Cemex Holdings Philippines shares skyrocketed on Tuesday, fueled by takeover rumors that caused its share price to sizzle by nearly 80 percent over the past two days.
Cemex Philippines shares soared about 42 percent to P1.56 each on Tuesday—blowing past the 2023 tender offer price of P1.30 that was launched by a major shareholder and creating a multi-year high for the cement giant.
Rumors spread on Tuesday that the Consunij family conglomerate DMCI Holdings is buying Cemex Philippines as an integration play with its core businesses such as housing (DMCI Homes), infrastructure and coal mining (Semirara Mining and Power), since coal is used in the cement manufacturing process.
DMCI, which previously expressed an interest to enter the cement business, appeared to deny the talks when reached by Biz Buzz.
“I am not aware as been busy with our [other projects],” a very highly placed source within the conglomerate said. This source clarified that he was aware of the rumors that were currently circulating in the market.
Regardless, the price action suggests that something is brewing, especially in a market where price swings tend to precede formal news announcements.
It’s good news overall for more recent shareholders of Cemex Philippines. This is not the case for long-term bag holders, especially to those who bought during the company’s IPO at P10.75 per share eight years ago. —Miguel R. Camus
No delaying SM Manila Bay reclamation
“To us, it’s a blessing in disguise,” SM Prime Holdings director Hans Sy told Biz Buzz.
He is referring to the government’s scrutiny of all reclamation projects along Manila Bay—backed by no less than the US Embassy, which is part of this neighborhood—that had led to the suspension of all reclamation activities last year.
After all the brouhaha, only two projects were left standing, including “Pasay 360,” SM Prime’s 360-hectare reclamation project in Pasay City, a joint venture with the local government, that will be connected to the sprawling Mall of Asia complex.
READ: SM Prime bags 360-hectare Pasay reclamation deal
The other is “Pasay 265” of Harbor Corp. led by businessman Charlie Gonzales (of Davao-based contractor Ulticon Builders) covering 265 hectares.
Sy reckoned that last year’s suspension of all projects and the subsequent review by regulators had allowed the SM group to put to rest all questions on the SM project, including those related to environmental and governance concerns.
“We were able to prove it’s good,” Sy said.
The suspension of reclamation activities last year had delayed SM’s Pasay 360 by three months, but Sy said, “mahahabol” (We can still catch up.) As such, he said there would be no delay in completion.
Based on the timetable, it will take five years to build the artificial island and horizontal infrastructure, without any vertical development. The project is about 30-percent complete to date, Sy said. — Doris Dumlao-Abadilla