DMCI Holdings Inc. expects to close the deal for the acquisition of cement firm Cemex Holdings Philippines by end-November.
Herbert Consunji, DMCI chief finance officer, said the group is waiting for the fairness opinion that will anchor the acquisition.
“At least we now have the PCC (Philippine Competition Commission) approval,” Consunji, who is set to lead DMCI’s cement venture, said in an interview on Tuesday.
Consunji said DMCI intends to keep Cemex listed even after the acquisition. “We want them to stay. It’s good to remain listed,” he said in English and Filipino.
DMCI in April offered to acquire the Philippines’ fourth largest cement manufacturer from its Mexico-based mother firm Cemex SAB de CV for $305.6 million.
The acquisition will require DMCI to issue a tender offer to the remaining 10.14 percent publicly-owned shares of Cemex.
Last month, DMCI said it looks to issue P10 billion worth of preferred shares to mother company Dacon Corp. to raise funds for the Cemex acquisition.
The company said it is reclassifying 10 million of its shares of stock into Class B preferred shares and will be sold at P1,000 apiece.
DMCI told regulators the preferred shares will have a par value of P10 and will carry a dividend rate of 4 percent, paid out quarterly.
The shares will be perpetual with DMCI reserving the option to redeem the shares at issue price starting on the fifth year of the share sale.
The holders of the shares will have the option to convert their holdings to common shares at a valuation of 30 percent premium over the volume weighted average price of the common shares over a 30-day trading period before the conversion date.
The shares will then be sold to Dacon through a private placement, payable in one lump sum or in installments, provided that full payment shall be made not later than the closing date for the purchase of shares in Cemex Asian South East Corp.
The fundraising will be presented to shareholders in a special meeting set for October 15 for shareholders as of September 6.
