MANILA, Philippines–Cement-maker Cemex Holdings Philippines Inc. has received the green light from its board to raise as much as $250 million from the sale of new shares to existing investors.
An increase in authorized capital stock, followed by an equity deal, is seen by Cemex as the best option to improve its capital structure, provide balance sheet flexibility, and fund the ongoing expansion of its Solid Cement plant in Antipolo, Rizal.
Cemex, which is part of Mexican multinational cement group Cemex S.A.B. de C.V., said in a disclosure to the Philippine Stock Exchange on Wednesday that its board had authorized a rights offering wherein eligible stockholders would have the opportunity to participate and subscribe to the common shares.
The board gave the company’s senior management the power and authority to fix the terms and conditions of the rights offering, including the final issue size which will be up to the peso equivalent of $250 million, the entitlement ratio, the offer price, the payment term and other terms.
Cemex broke ground for the cement plant expansion, which will cost around $235 million, last May. Upon completion, the new production line is expected to increase the total capacity of this plant from 1.9 million metric tons to 3.4 million metric tons per year. /jpv