Cemex Plans To Divest Operations In Philippines, Expects To Finalize Transaction Before Year-end, Proceeds Raised To Fund Company's Bolt-on Investment Growth Strategy In Key Market, Reduce Debts
Portfolio Pulse from Benzinga Newsdesk
Cemex, through its subsidiary Cemex Asia B.V., has agreed to sell its operations in the Philippines to DACON Corporation, DMCI Holdings, Inc., and Seminara Mining & Power Corporation. The sale includes 100% equity interest in Cemex Asian South East Corporation, which owns about 89% of Cemex Holdings Philippines, Inc. (CHP), and a 40% indirect equity interest in APO Land & Quarry Corporation and Island Quarry and Aggregates Corporation. The transaction is part of Cemex's strategy to rebalance its portfolio, with proceeds aimed at funding growth investments and reducing debt.
April 25, 2024 | 10:18 am
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POSITIVE IMPACT
Cemex's divestiture of its Philippine operations is expected to positively impact its financial health by providing funds for growth investments and debt reduction.
The sale of Cemex's operations in the Philippines is a significant move to rebalance its portfolio towards more profitable and strategic areas. By divesting these assets, Cemex is expected to reduce its debt and allocate more resources to growth investments in key markets. This strategic shift is likely to be viewed positively by investors, as it indicates a focus on long-term financial health and operational efficiency.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90