Philcement Corp., a unit of conglomerate Phinma Corp., on Tuesday signed a share purchase agreement to buy all of Petra Cement Inc.
Philcement Mindanao Corp., a subsidiary of Philcement, will pay P500 million in exchange for 100 percent of the outstanding shares of Petra, the company said.
The transaction is seen closed by end of the year, the company told regulators.
This follows the signing of a manufacturing and sale agreement in January between Philcement and Petra that allowed Philcement to operate the Petra plant, and to manufacture, distribute and sell cement products.
The Petra plant is located in President Manuel A. Roxas, Zamboanga del Norte.
“This is aligned with Philcement’s growth strategy and the promise assuring consumers of reliable, high-quality supply of cement products under its legacy brand, Union Cement,” the company said.
Eduardo A. Sahagun, Phinma executive vice president for construction materials group, said the acquisition positions Phinma as the only company serving the cement needs of northern Mindanao.
“We actually look at that as an opportunity. When we look at where it is located, it’s almost like we’re the only one there serving northern Mindanao. We think that has a good potential for us and brings us closer to where we want to be as we actually put together our model for being more sustainable for our cement business,” Sahagun said.
The acquisition will complement the 1.5 million ton per year cement packaging plant the company plans in Davao. Phinma has a processing plant in Mariveles, Bataan.
“That will bring our total capacity to somewhere like 5 million tons if all those things will be completed in a couple of years,” Sahagun said.
According to him, the Davao plant is about to start, its initial costing estimated at P2 billion.
Philcement, 60 percent owned by Phinma, is engaged in the manufacture, importation, processing, distribution and sale of cement products.
It operates a cement processing facility at the freeport area of Bataan in Mariveles.
Philcement Mindanao is a 70 percent owned subsidiary of Philcement.
