Cemex Holdings Philippines, Inc. (CHP) has raised about P177 million ($3.01 million) from the sale of its wholly-owned, Barbados-registered reinsurance company to an affiliate of Cemex, S.A.B. de C.V.
In a disclosure to the Philippine Stock Exchange, the firm said it has signed a Share Purchase Agreement with Torino Re Ltd (Purchaser), an affiliate of Cemex, S.A.B. de C.V., for the sale of all of CHP’s shares in Falcon Re Ltd.
Falcon Re is a wholly-owned foreign subsidiary of CHP established in Barbados which reinsures third-party insurers of CHP covering risks associated with property insurance coverage, with political violence and non-damage business interruption (NDBI) programs, professional liability program and cyber risks.
The sale transaction is subject to certain pre-closing conditions that are expected to be obtained before the end of the year.
DMCI Holdings Inc. expects to complete the process of acquiring 89.86 percent of CHP by end-November after recently securing the greenlight for the $305.6 million deal.
In an interview, DMCI Chief Finance Officer Herbert Consunji the next step after the PCC approval is obtaining the fairness opinion for the acquisition which will also determine if the tender offer price for the public shares will also be fair.
“At least we now have the PCC approval. We are now waiting for the fairness opinion by PwC Philippines (Isla Lipana & Co.),” said Consunji, who is set to lead DMCI’s cement business.
Consunji said DMCI has no intention of seeking the delisting of Cemex Philippines after the acquisition as he noted that “it is better to be listied” in cash they want to tap the equities market for fresh capital.