Cemex Holdings Philippines Inc. said it failed to secure the required two-thirds of votes from shareholders to increase its authorized capital stock to P18.31 billion from P5.2 billion which would have enabled the company to raise fresh funds.
CHP said in a disclosure to the stock exchange while the proposed increase in the capital stock was voted affirmatively by shareholders representing 64.69 percent of total issued shares, it was short of the two-thirds of the required affirmative votes for the proposal.
“Following this, CHP announced that it will continue to evaluate different options to strengthen CHP’s capital structure,” the company said.
It said with the results of the voting, the planned $250 million (P13.1 billion) equity offering would not push through in the short term.
CHP’s board of directors approved in April the increase in the company’s capital stock to enable it to raise funds to finance the expansion of Solid Cement plant in Rizal, improve its capital structure and provide balance sheet flexibility.
CHP is currently constructing another cement line in Antipolo Rizal that is capable of producing 1.5 million metric tons annually.
The $235-million expansion plan is expected to increase CHP’s cement capacity by 26 percent. The new line is expected to be operational by the fourth quarter of 2020.
CHP budgeted P7.75 billion in 2019 capital expenditures primarily to fund Solid Cement plant’s expansion.
Solid Cement is producing 1.9 million metric tons of cement for Southern Luzon and the National Capital Region.
CHP reported a net income of P172 million in the first quarter, up 137 percent from P73 million a year ago on better operating income and lower foreign exchange losses.
Net sales climbed six percent in January to March this year to P6.23 billion from P5.89 billion in the same period last year on higher prices.
