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Bilyonaryo - Business

Hottest stock of the year so far: CHP could follow RSA’s Eagle Cement lead, makes P2.1 billion tender offer for possible delisting

  • January 25, 2023
  • Bilyonaryo.com

The local unit of Mexican cement giant is following the lead of ultra bilyonaryo Ramon S. Ang who recently privatized his Eagle Cement.

In a disclosure, Cemex Holdings Philippines (CHP) said its parent,CEMEX Asian South East Corp (CASEC), has made a voluntary tender offer to purchase P1.614 billion shares at P1.30 each.

The shares account for 12 percent of CHP’s outstanding common shares and would increase CASEC’s stake to 90 percent. The tender offer would reduce the firm’s public float to 10 percent, the minimum requirement or listing on the Philippine Stock Exchange.

CHP explained the tender offer was meant to “optimize and rebalance CEMEX’s asset portfolio in the region where CHP operates” which could mean divestments or delisting.

“CASEC actively evaluates divestment opportunities, and does not ruleout that, in the short or medium term, it may sell all of CHP’s shares or cause the divestment by CHP of one or more of the operations and/or assets, to other companies that are part of the group headed by CEMEX or unrelated parties,” said CHP.

The tender offer is set from February 16 to March 16.

CHP rocketed 18 percent to P1.02 yesterday. It has gained 67 percent since the start of the year making it the best performing stock so far this year.

The tender offer price is just 16 percent of CHP’s initial public offering price of P10.75 in 2016

In sharp contrast, Ang’s tender offer price of P22.02 for EAGLE is 47 percent higher than its IPO price in 2017.

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Usapang Bilyonaryo by Ces Drilon

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“Usapang Bilyonaryo” is a digital-first, hybrid magazine show hosted and produced by veteran broadcast journalist Ces Oreña-Drilon in cooperation with the Bilyonaryo.com team. The 30-minute TV cut airs on CNN Philippines at 8 PM every Monday, starting January 16. The full version or producer’s cut of each episode, as well as interview splices, will be posted on Bilyonaryo.com’s Youtube and Facebook accounts.

 

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