The Consunji Group is entering the cement manufacturing industry through the acquisition of Cemex Asian South East Corp. (CASEC), the majority owner of listed Cemex Holdings Philippines Inc. (CHP), for $305.6 million.
DMCI Holdings Inc. of the Consunji family, along with its parent firm Dacon Corp. and Semirara Mining and Power Corp., signed a share purchase agreement Thursday with Cemex Asia B.V. to acquire its 42,140,266 common shares in CASEC.
“Cement manufacturing will be a good strategic addition to our business portfolio,” DMCI Holdings, Dacon and Semirara chairman Isidro Consunji said in a statement to the Philippine Stock Exchange. “We can leverage our group’s expertise and create new revenue streams from this acquisition.”
The transaction is expected to close before the end of the year, subject to customary closing conditions, including securing clearance from the Philippine Competition Commission and completing a mandatory tender offer to the minority shareholders of CHP.
DMCI is set to acquire a 56.75-percent stake in CASEC, while Dacon will acquire 32.12 percent and Semirara will obtain the balance of 11.13 percent.
The deal is part of Cemex Asia’s wider divestment of its Philippine assets. Under the agreement, DMCI, DACON and Semirara will acquire Cemex Asia B.V.’s full ownership of Cemex Asian South East Corp. and its subsidiaries APO Cement and Solid Cement for $660 million, minus debt.
Cemex Asian South East Corp. owns nearly 90 percent of Cemex Philippines, the country’s fourth-largest cement maker.
Cemex Philippines’ stock climbed 16 percent Thursday, while that of DMCI rose 2.4 percent.