CEMEX increases investments in Rizal Cement in the Philippines and Semen Gresik in Indonesia
January 12, 1999
CEMEX, S.A. de C.V. (CMXBY:OTC) announced today that it has increased its investments in Rizal Cement Co. (Rizal), a Philippines based cement manufacturer, and PT Semen Gresik, Indonesia´s leading cement producer.
CEMEX acquired the economic rights of an additional 40% interest in Rizal for a total consideration of US$128 million. CEMEX had already acquired a 30% participation in the paid in capital of Rizal, in a transaction made in October 1997.
The investment was made in conjunction with Philippine investors. As part of the agreement, and subject to nationality requirements, CEMEX will have the right to designate the majority of the members of the board of directors of Rizal.
Rizal has 2.8 million metric tons of cement production capacity. Rizal also has US$31 million in debt.
In a separate transaction, CEMEX secured an additional 6% stake in PT Semen Gresik through a public tender offer for US$1.38 per share, for a total of US$49.1 million. This investment would increase CEMEX´s interest in Gresik to 22%.
Gresik has 17.2 million metric tons of cement production capacity and is the market leader in Indonesia.
Founded in 1906, CEMEX is one of the three largest cement companies in the world with close to 59 million metric tons of production capacity. Through operating subsidiaries well positioned in three different continents, CEMEX is engaged in the production, distribution, marketing and sale of cement, ready-mix concrete, aggregates and clinker. In addition, the Company is the world´s leading producer of white cement and the world´s largest trader of cement and clinker.