Cemex Asia to sell operations and assets in the Philippines

Cemex's Asia subsidiary has signed an agreement with DACON Corporation, DMCI Holdings Inc., and Semirara Mining & Power Corporation for the sale of its operations and assets in the Philippines. 

Assets to be sold by are:

1. 100% equity interest in Cemex Asian South East Corporation, who own approximately 89% of Cemex Holdings Philippines (CHP), for a purchase price amounting to an enterprise value of US$660 million (£525 million) less net debt and the 10.14% minority interest in CHP. CHP are the owners of Cemex’s main operating subsidiaries in the Philippines – APO Cement Corporation and Solid Cement Corporation.

2. 40% indirect equity interest in each of APO Land & Quarry Corporation and Island Quarry and Aggregates Corporation, for a purchase price to be paid to Cemex of 40% of an aggregate enterprise value of US$140 million (£111 million).

Cemex expect to finalise the transaction before the end of 2024, subject to the satisfaction of closing conditions, including approval by the Philippine Competition Commission and the fulfillment of any mandatory tender offer requirement by the purchasers to the shareholders of CHP, including the approximate 10.14% minority interest owned by third parties in CHP.

Pending the closing of the transaction, Cemex’s operations and business in the Philippines will continue as normal. 

Proceeds from the divestment are expected to be used to fund the company’s bolt-on investment growth strategy in its key markets, reduce debt, and for other corporate purposes.