Eagle Cement Corp., a publicly-listed firm controlled by the family of tycoon Ramon S. Ang, is acquiring 100 percent of the capital stock of sister company Solid North Mineral Corp. (SNMC) for P3.57 billion.
In a disclosure to the Philippine Stock Exchange, the firm said on Friday, Sept. 24, that the transaction will be done through a share purchase agreement, noting that the acquisition price is less than 10 percent of the Eagle Cement’s book value.
The amount also represents 7.19 percent of the Eagle Cement’s total assets of P49.66 billion based on 2020 audited financial statements.
SNMC is owned by Eagle Cement’s parent company, Far East Holdings, Inc. (34.51 percent) and Ang (65.49 percent).
SNMC was issued a certificate of incorporation by the Securities and Exchange Commission on July 19, 1995. It is primarily engaged in mining of metallic and non-metallic resources, exploration, quarrying activities and processing of limestone.
It is a holder of a mineral production sharing agreement (MPSA)issued by the Mines and Geosciences Bureau. It has a limestone pulverizing plant in San Ildefonso, Bulacan.
“The acquisition is a strategic move by the Corporation to ensure sustainable supply of raw materials (limestone, shale, Pozzolan) for its operations,” said Eagle Cement.
It noted that, “The MPSAs of SNMC are strategically located and are adjacent to the Corporation’s plant and MPSAs in Bulacan.”
BPI Capital Corp. has been tapped as the independent valuation firm to conduct the valuation services and the preparation of an independent valuation report on the asset with respect to the proposed transaction.
Eagle Cement posted a 181 percent jump in net income to a record P3.7 billion in the first half of 2021 from P1.32 billion in the same period last year as the government allowed the resumption of construction activities.
The firm reported an 87 percent growth in net sales to P11.06 billion the P5.91 billion generated in the first semester of 2020.
Eagle Cement said this is due to higher sales volume notwithstanding the decrease in average selling price of cement per bag due to tight competition.