Cemex Holdings eyes $250-M stock offer.
By James A.Loyola
Cemex Holdings Philippines, Inc. (CHP) is planning to raise $250 million from the issuance of new common shares, possibly a stock rights offering, to fund its ongoing expansion program.
In a disclosure to the Philippine Stock Exchange, the firm said it is seeking to increase its authorized capital stock to P18.31 billion from the current 5.2 billion to create new shares for the planned issuance.
"The rationale for the amendment is for the ability to raise equity capital including, but not limited to, a rights offering, that the Corporation may undertake, subject to the final decision and approval of the Board of Directors," CHP said.
IT added that, it is "potentially looking to raise up to US$250 million which would allow it to improve its capital structure, fully fund the ongoing Solid Cement plant expansion and provide balance sheet flexibility."
"Following this capital raising exercise, any unissued shares will be kept in the form of authorized but unissued share capital and the Corporation currently has no plans for any further fundraising," CHP noted.
Solid Cement borrowed US$75 million from a related company to refinance debt and fund its expansion program last November. CHP said Solid has availed of a subordinated revolving credit facility from CEMEX Asia B.V.
The proceeds of this facility is being used for general corporate purposes including the refinancing of existing debt and the funding of the construction and installation of the 1.5 million metric tons per year expanded/new integrated cement production line at Solid's cement plant located in Antipolo City, Rizal.
Solid Cement is investing US$235 million for the construction of a new integrated cement production line and has entered into the principal project agreements with CBMI Construction Co., Ltd. of China for the procurement, construction and installation of the facility.
The new integrated cement production line will represent a 26 percent increase in CHP's cement capacity in the Philippines. CHP currently estimates the new line to start operations by the fourth quarter of 2020.
|Printer friendly Cite/link Email Feedback|
|Title Annotation:||Business News|
|Date:||Apr 4, 2019|
|Previous Article:||Emperador net profit up 8% to P6.8 B.|
|Next Article:||Panda, the promise.|