By JAMES A. LOYOLA
CEMEX Holdings Philippines, Inc. has set the offer price for its planned stock rights offering (SRO) of 8.29 billion shares at ₱1.54 per share to raise ₱12.77 billion or $250 million.
In a disclosure to the Philippine Stock Exchange, the firm said proceeds from the SRO would be used primarily to fund the expansion of its Solid Cement plant.
This includes the payment of outstanding amounts owed by Solid Cement Corporation under a credit facility agreement dated November 21, 2018 between Solid, as the borrower, and Cemex Asia B.V. (CABV), as the lender.
The facility agreement had been used to fund the expansion project, and for other general corporate purposes, including paying outstanding amounts owed by APO Cement Corporation (APO) under a loan agreement dated October 1, 2014 between APO, as borrower, and CABV, as lender.
The Hongkong and Shanghai Banking Corporation Limited, Singapore Branch is acting as the Global Coordinator while BDO Capital & Investment Corporation serves as the Domestic Underwriter for the transaction.
The SRO is open to existing common shareholders who are holders located inside the Philippines or holders located in jurisdictions outside the Philippines and outside the United States where it is legal to participate in the Offer under the laws of the applicable jurisdiction, in each case as of the Record Date.
All Eligible Shareholders as of the Record Date will be notified of the Offer and their respective rights entitlements.
The Offer is expected to be made to all Eligible Shareholders of the Company as of January 14, 2020. The expected offer period will be from January 20, 2020 to January 24, 2020.