Consunji’s Cemex PH avoids delisting, keeps ownership rule compliance after buyout deal

The Consunji Group completed its buyout offer to stockholders of Cemex Holdings Philippines, with less than 1 percent of minority shareholders selling their shares, ensuring the cement giant remains compliant with public ownership rules and avoids delisting from the Philippine Stock Exchange.

Based on the tender offer report, approximately 12.88 million shares worth P18.3 million were tendered, representing 0.95 percent of the shares owned by the public. The Consunji Group would have paid about P1.9 billion if all minority stockholders sold their shares. 

Following the buyout offer, Cemex Holdings will have a public float of 10.1 percent, above the minimum 10 percent required by the PSE.

What happened?

Earlier this year, Consunji Group firms Dacon Corp., DMCI Holdings, and Semirara Mining and Power Corp. announced their diversification into cement through the P17.6-billion takeover of Cemex Philippines, the country’s fourth-largest cement maker.

This change in control also triggered the tender offer rule, requiring the buyer to offer the same purchase price to allow minority stockholders to exit at the same valuation.

Isidro Consunji 

DMCI chair, president and CEO 

Last month, Dacon formally launched a tender offer for the 1.36 billion shares it does not yet own at P1.42 each, a price below Cemex Philippines’ current market value.

This led to a low participation rate, as some stockholders faced the prospect of selling at a potential loss.

Cemex Philippines was trading at P1.70 before the tender offer price was announced and declined afterward, but it did not fall below the offer price. On Thursday, it was trading at P1.63 before the noontime break.

Did the tender offer succeed?

This  depends on the objectives. In similar buyout deals, stockholders have accepted lower tender offer prices to avoid being stuck in a company nearing privatization, which limits their options to exit.

However, the Consunji Group announced early on their intention to keep Cemex Philippines listed even after the tender offer.

This may have given minority stockholders the confidence to hold on to their shares for a longer period.

2025 turnaround plan

Tycoon Isidro Consunji, the chair, president, and CEO of DMCI, earlier announced plans to reverse losses at the cement maker by 2025.

This will entail strict cost controls but also attractive synergies with other parts of its portfolio, he said.