DMCI Holdings Inc. said Tuesday its board approved the reclassification of 10 million preferred shares into Class B preferred shares to finance the acquisition of Cemex Asian South East Corp., the parent company of cement manufacturer Cemex Holdings Philippines Inc.
Cemex Asian owns 89.86 percent of Cemex Philippines.The preferred B shares, which carry a fixed annual dividend rate of 4 percent, gives their holders the option to covert them into common shares at a price that is a 30 percent premium over the volume-weighted average price 30 days prior to the conversion.
DMCI said all the10 million Class B preferred shares will be issued to Dacon Corp. via private placement after approval of shareholders and the authorization of the Securities and Exchange Commission. The preferred shares will be issued at P1,000 each, or a total of P10 billion.
The payment to Dacon may be made in a lump sum or installment, with full payment required no later than the closing date for the purchase of shares in Cemex.
