Cement manufacturer Cemex Holdings Philippines Inc. said Wednesday its shareholders approved the proposed increase in authorized capital stock to P18.31 billion which would enable it to raise up to $250 million.
CHP said in a disclosure to the stock exchange its shareholders agreed to increase the authorized capital stock to P18.31 billion divided into 18.31 billion common shares with a par value of P1 per share from the current P5.19 billion divided into 5.19 billion common shares with a par value of P1 apiece.
“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,” Cemex said.
“The corporation is potentially looking to raise up to $250 million which would allow it to improve its capital structure, fully fund the ongoing Solid Cement plant expansion and provide balance sheet flexibility,” it said.
This is the second time that Cemex sought shareholders approved for the planned capital hike.
CHP failed in June to secure the required two-thirds vote from shareholders to increase its capital stock.
The proceeds from the planned fund-raising activity will be used to finance the expansion of Solid Cement plant in Antipolo, Rizal. The new cement line is expected to produce 1.5 million metric tons annually which will increase CHP’s cement capacity by 26 percent.
The new plant is expected to be operational by the fourth quarter of 2020.
CHP programmed P7.75 billion in capital expenditures this year primarily to fund the Solid Cement plant expansion.
