Cemex Philippines subsidiary reduces capital stock

LISTED cement manufacturer Cemex Holdings Philippines, Inc. (CHP) is expected to receive more capital as one of the company’s subsidiaries lowered its authorized capital stock.

CHP subsidiary Edgewater Ventures Corp. (EVC) has secured approvals to lower its authorized capital stock to P20 million, consisting of 200,000 common shares with a par value of P100 apiece, the cement producer said in a stock exchange disclosure on Tuesday.

Prior to the move, EVC’s authorized capital stock was at P229 million, comprising 1.83 million common shares with a par value of P100 per share and 2.85 million redeemable preferred shares with a par value of P16 each.

“The reason behind the decrease in authorized capital stock is to eliminate the 712,500 redeemable preferred shares that were retired into treasury back in December 2015 and to implement a return of capital to CHP,” the cement firm said.

CHP holds APO Cement Corp. directly and indirectly, through EVC and Triple Dime Holdings, Inc.

APO Cement is engaged in the production, marketing, distribution, and sale of cement and other cement products.

Last month, DMCI Holdings, Inc., through the Consunji group’s private holding company Dacon Corp., announced the conduct of a P1.94-billion mandatory tender offer to acquire the remaining 10.14% of CHP, which will remain listed.

The tender offer intends to acquire up to 1.37 billion publicly owned CHP common shares at P1.42 apiece, equivalent to 10.14% ownership. The tender offer period will be from the morning of Oct. 23 up to noon of Nov. 21.

The move is part of DMCI’s acquisition of CHP. Under the deal, Dacon has been appointed as the bidder for the mandatory tender offer to acquire the remaining 10.14% of the total issued and outstanding capital stock of CHP.

DMCI, Semirara Mining and Power Corp. (SMPC), and Dacon Corp. announced in April the acquisition of CHP for $305.6 million under a share purchase agreement to expand the conglomerate’s portfolio.

DMCI bought the entire share of Cemex Asia B.V. in Cemex Asian South East Corp. (CASEC), the majority owner of CHP with an 89.96% equity interest. DMCI will acquire a 56.75% stake in CASEC, Dacon will secure 32.12%, and SMPC will purchase the remaining 11.13%.

On Tuesday, CHP shares were unchanged at P1.57 per share. — Revin Mikhael D. Ochave