Isidro, the Chair, president, and CEO of family conglomerate DMCI Holdings, will serve as Chair of Cemex Philippines.
His cousin Herbert, chief finance officer and director of DMCI Holdings, will take on the role of President and CEO of Cemex Philippines.
“He will lead turnaround efforts to further streamline operations and unlock synergies,” DMCI said in a joint statement on Tuesday.
Management’s view
“Our priorities are to enhance the logistics network, optimize the product mix, manage production and operating costs, and leverage potential operating synergies within the DMCI ecosystem,” Herbert said.
The acquisition is expected to boost DMCI’s business network by creating steady demand for its coal, power, fly ash, and cement products.
Revised purchase price
The group completed the takeover of Cemex Philippines, via parent Cemex Asian South East Corp., for $272 million, lower than the previously announced figure of $305.6 million.
DMCI owns a 51 percent stake in Cemex Philippines. Its affiliates, Semirara Mining and Power Corp. and Dacon Corp., own 10 percent and around 29 percent, respectively.
Cemex Philippines, which trades under the stock symbol CHP, rose 1.89 percent on Monday to P1.89 per share, valuing the company at P25.5 billion.
DMCI diversifies into a new sector
“We are excited to welcome Cemex Holdings Philippines into the DMCI group,” Isidro said in a stock exchange filing on Tuesday.
“This acquisition aligns with our core expertise in engineering and construction and our dedication to contributing to the infrastructure development of the Philippines,” he added.
Cemex Philippines owns APO Cement Corp. and Solid Cement Corp., with an annual production of 5.7 million tons. This is projected to rise to 7.2 million tons by early 2025 with the completion of Solid Cement Corporation’s expansion plant.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
