The share price of Cemex Holdings Philippines Inc. plunged on Friday after DMCI Holdings Inc. reported that it is acquiring a controlling stake in CHP’s parent firm at P1.42 per share, below market expectations.
CHP’s stock went as high as P2.30 a few days before news broke out that DMCI was in talks to purchase CHP. “CHP equity value of US$340.1 million divided by the total outstanding shares of 13,489,226,623 would result in P1.42 per share of CHP,” DMCI said. DMCI said adding cement manufacturing into its portfolio strategically leverages DMCI Group’s expertise. The acquisition will also introduce new revenue streams, diversify its financial base and mitigate risks associated with the volatility of commodity prices, it said.CHP owns and operates APO Cement Corp. and Solid Cement Corp. which are engaged in the production, sale and distribution of cement and other buildings materials in the country.