CEMEX Holdings Philippines, Inc. (CHP) is still optimistic it can raise its authorized capital stock to P18.31 billion within the year, even as it failed to secure the approval of majority of its shareholders in its last meeting.
The listed cement manufacturer said in a statement Thursday that it continues to pursue activities that will help it achieve the capital increase.
“CHP’s board of directors is expected to disclose certain details of the transaction during the third quarter of 2019,” the company said.
To recall, shareholders representing only 64.69% of the company’s total outstanding capital stock approved the firm’s plan to increase its authorized capital stock from the current P5.195 billion during its annual shareholders’ meeting on June 6. This is lower than the required affirmative vote of two-thirds of the firm’s outsanding capital stock under the Revised Corporation Code.
The company said its Investor Relations team has been contacted by a number of shareholders who expressed support for the capital increase but were not able to attend the meeting.
“CHP would also highlight that any potential equity capital raise would be fair, transparent and equitable to all its shareholders. All relevant approvals will be sought and appropriate disclosures would be made to the Securities and Exchange Commission, Philippine Stock Exchange and the public in accordance with regulatory requirements,” the company said. —Arra B. Francia
The company’s board approved the capital increase back in April, to support its plan to raise up to $250 million through a potential stock rights offering. Proceeds were supposed to finance CHP’s expansion of its Solid Cement plant in Antipolo, Rizal worth $235 million.
The new cement line is expected to start operations by the fourth quarter of 2020. It will serve the cement requirements of the National Capital Region and Southern Luzon.
CHP, however, said it is still on track to complete the cement line by next year even without the stock rights offering.
The company grew its attributable profit by 144% to P168.65 million in the first quarter of 2019, after gross revenues also improved by six percent to P6.24 billion.
Shares in CHP slid 2.29% or seven centavos to close at P2.99 each at the stock exchange on Thursday. — Arra B. Francia
