Mexico's Cemex To Sell Operations in Philippines for $306 Million

By Anthony Harrup

MEXICO CITY--Building-materials company Cemex said Thursday it has reached agreement to sell its operations in the Philippines as part of a strategy to rebalance its portfolio.

Cemex subsidiary Cemex Asia signed an agreement with DMCI Holdings and related companies for the sale of the assets, which include stakes in Cemex Holdings Philippines and several quarry businesses.

DMCI Holdings said in a filing with the Philippine Stock Exchange that the buyers will pay about $306 million for Cemex Asian South East Corp., which owns 89% of publicly traded CHP. They will also conduct a mandatory tender offer for CHP shares owned by minority shareholders.

Adding cement to its portfolio "introduces new revenue streams, diversifying our financial base and mitigating risks associated with the volatility of commodity prices," DMCI said.

Cemex's chief financial officer Maher Al-Haffar said in a conference call with analysts that the value of the transaction to Cemex is about $708 million in cash and debt assumed by the buyers. The amount includes about $56 million from the sale of the quarry stakes.

Cemex said it would use proceeds from the sale for bolt-on acquisitions, debt reduction and other purposes. The companies expect to close the deal by the end of the year.

Write to Anthony Harrup at anthony.harrup@wsj.com

(END) Dow Jones Newswires

April 25, 2024 17:24 ET (21:24 GMT)

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