Cemex initiates $250 million stock rights offering

MANILA, Philippines — Cemex Holdings Philippines Inc. (CHP) has initiated the process for its planned $250 million stock rights offering with the goal of finalizing it within first quarter of next year.

In a disclosure to the Philippine Stock Exchange (PSE) yesterday, CHP said it has begun the corresponding processes with the Securities and Exchange Commission (SEC) and the PSE so that the stock rights offering can take place.

The move was made following the approval of stockholders to increase the company’s authorized capital stock during a special stockholders meeting on Wednesday.

CHP said it expects the SRO would be finalized during the first quarter of 2020, subject to corresponding approvals from the SEC and PSE.

“CHP expects to disclose the terms and conditions of the SRO on a later date as is standard for these types of transactions,” it said.

The company plans to raise as much $250 million from a stock rights offering.

CHP, one of the leading cement producers in the country, produces and markets cement and cement products, such as ready-mix concrete and clinker.

The firm’s cement manufacturing subsidiaries have been operating in the Philippines with well established brands, such as APO, Island, and Rizal.

The expansion of the company’s Solid Cement plant is expected to come online by the fourth quarter of 2020.

CHP’s management continues to believe that a capital increase is currently the best option for CHP to improve its capital structure, fully fund the ongoing Solid Cement plant expansion and provide balance sheet flexibility.