Shareholders of DMCI Holdings Inc. approved the sale of P10 billion worth of preferred shares to Dacon Corp. at a special stockholders meeting on Tuesday. The funds will finance the acquisition of Cemex Holdings Philippines Corp.
Chairman Isidro A. Consunji said this development will enhance the company’s balance sheet without diluting the voting rights of existing shareholders. The preferred shares will carry a 4 percent dividend rate, with at least 25 percent of last year’s permanent income guaranteed for common shareholders.
Dacon, DMCI’s unlisted parent company, has the option to convert its preferred shares into common shares at a 30 percent premium over the average price 30 days prior to conversion. The private placement aims to optimize financing costs while benefiting from both investors and the company.
DMCI previously announced its plan to acquire Cemex through the purchase of Cemex Asian SouthEast Corp. for USD305.6 million. A tender offer for publicly owned shares in Cemex will be available from 23 October to 21 November, with intentions to maintain Cemex’s public listing.
The company indicated that should Cemex’s public float fall below the 10 percent threshold, Dacon may sell some of its shares to ensure compliance with Philippine Stock Exchange regulations. The acquisition is expected to close by the end of November.
