CEMEX announces a US$500 million share repurchase program
September 29, 2000
CEMEX, S.A. de C.V. (NYSE: CX), announced today that its Board of Directors has approved a share repurchase program in the amount of up to US$500 million to be implemented between third quarter 2000 and December 2001.
The program, which covers CEMEX CPOs that are listed on the Mexican stock exchange under the ticker CEMEX CPO, will be funded with resources from the repurchase reserve. These resources represent less than 50% of our estimated free cash flow during the repurchase period. All shares repurchased under this program will be permanently cancelled.
As of June 30, 2000, CEMEX had 4,199,359,350 A and B shares outstanding. Each CPO is composed of 2 A shares and 1 B share. The CPO closing price for September 28, 2000, on the Mexican stock exchange was $39.65 pesos, equal to US$4.20.
"This initiative demonstrates our commitment to use our free cash flow in a balanced approach as we make accretive investments," said Lorenzo H. Zambrano, Chairman and CEO. "It will also allow us to take advantage of what we perceive to be a compelling investment opportunity. This demonstrates our confidence in CEMEX's strong capital structure and ability to deliver value to our shareholders."
Rodrigo Treviño, Chief Financial Officer, stated "The size of this share repurchase program is equivalent to about 8% of our equity market capitalization given existing market conditions. We expect to maintain a healthy capital structure and deliver even higher growth rates on a per-share basis as the number of shares outstanding diminish."
CEMEX is one of the three largest cement companies in the world with approximately 65 million metric tons of production capacity. It is also the world's largest trader of cement and the world's leading producer of white cement. CEMEX is engaged in the production, distribution, marketing and sale of cement, ready-mix concrete, aggregates and clinker through operating subsidiaries in four different continents. For more information, visit www.cemex.com.
Daniel Pérez Whitaker
(528) 152 2747
(528) 328 3631
José Antonio González