Cemex forms an Asian holding firm<\/p>\n
MEXICO CITY (Reuters): Mexican cement producer Cemex on
\nMonday said it was forming an Asian holding company with $950
\nmillion in start-up capital to oversee its businesses in that
\npart of the world, possibly auguring further expansion in the
\nregion.<\/p>\n
Cemex Asia Holdings (CAH), a subsidiary of Monterrey-based
\nCemex SA de CV, \"was created to take advantage of investment
\nopportunities in cement assets in Asia,\" Cemex said in a
\nstatement issued through the Mexican stock exchange.<\/p>\n
Cemex has bought cement assets in the Philippines and
\nIndonesia in recent years, leaving industry analysts wondering
\nwhen the company might go shopping in the region again.<\/p>\n
\"They have talked about Thailand and Malaysia, and once they
\ntalked about Vietnam, apart from the Philippines and Indonesia,\"
\nsaid Carlos Pena, an analyst with Afin Securities.<\/p>\n
Cemex has become the world's third-largest cement company with
\nother acquisitions in Europe, the United States and throughout
\nLatin America.<\/p>\n
\"This accord marks an important step in our financial
\nstrategy, designed to support Cemex's business plan in Asia,\"
\nCemex Chief Financial Officer Rodrigo Trevino said in the
\nrelease.<\/p>\n
\"We will continue analysing opportunities for growth in the
\nregion and the formation of Cemex Asia Holdings gives us the
\nfinancial flexibility to pursue attractive investment
\nalternatives.\"<\/p>\n
The new Asian holding company was formed with $150 million
\nfrom two large institutional investors -- AIG Asian
\nInfrastructure Fund II L.P., which specialises in investment in
\nAsian infrastructure projects, and GIC Special Investments Pte
\nLtd., a subsidiary of the Government of Singapore Investment
\nCorp. (GIC), which manages Singapore's reserves for long-term
\ninvestments.<\/p>\n
Cemex said it would put up the other $850 million.<\/p>\n
Cemex Asia Holdings will use the start-up funds to acquire
\nfrom Cemex SA de CV its stakes in Rizal Cement and APO Cement,
\ntwo Philippine companies in which Cemex is majority owner.<\/p>\n
As a result, Cemex's stake in Rizal will fall to 59 percent
\nfrom 70 percent, while the Cemex stake in APO will fall from 99.9
\npercent to about 84 percent, the company said.<\/p>\n
Those deals are expected to be completed by the end of the
\nthird quarter, and Cemex SA de CV will use the cash to reduce
\ndebt, the company said.<\/p>\n
Cemex, which has annual sales of about $4.5 billion, listed
\nabout $5 billion in debt at the end of the first quarter, roughly
\nhalf its total assets.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/cemex-forms-an-asian-holding-firm-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}