MANILA, Philippines – A unit of a San Miguel Corporation subsidiary will acquire an 85.73% stake in cement producer Holcim Philippines, Incorporated (HPI) for $2.15 billion, the food and beverage giant said in a disclosure to the Philippine Stock Exchange on Friday, May 10.
San Miguel said First Stronghold Cement Industries, Incorporated – a wholly-owned unit of San Miguel Equity Investments, Incorporated – inked the purchase deal with HPI's parent company LafargeHolcim, Limited, on Thursday, May 9.
"The acquisition of HPI will increase the foothold of the San Miguel Group in the cement business, and will provide the opportunity to implement its plan to expand its cement business nationwide," San Miguel said in its disclosure to the PSE.
Under the transaction, San Miguel bought the shares of Dutch company Holderfin B.V., Union Cement Holdings Corporation, and Cemco Holdings, Incorporated, which makes up 85.73% of the total shares of HPI.
San Miguel said the transaction involves the purchase of a total of 5,531,566,062 common shares equivalent to 85.73% of the total outstanding and issued capital stock of Holcim Philippines.
First Stronghold Cement is also required to offer to buy the remaining 14.27% shares from the remaining minority shareholders.
San Miguel, however, said that the closing of the transaction was still subject to the approval of the Philippine Competition Commission.
This deal is seen to further expand San Miguel's cement business. Holcim earlier announced the temporary closure of its plant in Mabini, Batangas. (READ: Cement shortage seen to delay construction projects – Pronove Tai) – Rappler.com