PHINMA Corporation has announced that Japan’s Sumitomo Osaka Cement Co., Ltd. is buying 15 percent of its cement operation, Philcement Corp.
The company told the Philippine Stock Exchange (PSE) that Sumitomo signed the subscription agreement on September 16, for the purchase that will see the company infusing fresh capital into the cement operation and PHINMA retaining control.
In exchange, Sumitomo will receive an undisclosed number of primary shares, with the transaction expected to be closed before the end of the year, subject to customary closing conditions.
A company representative told Malaya Business Insight that the transaction will undergo shareholders’ approval.
PHINMA said the transaction is aligned with Philcement’s strategy and commitment “to grow its manufacturing operations and provide Filipino consumers with a reliable, high-quality supply of cement products under its legacy brand, Union Cement.”
“Upon closing of the transaction, PHINMA will remain as the majority shareholder of the company,” it said.
Philcement Corp. is 60 percent owned by PHINMA. It engages in the manufacture, importation, processing, distribution, and sale of cement products. It currently has manufacturing operations in Bataan, Pampanga, Zamboanga del Norte, and Davao.
