DMCI Holdings Inc., a prominent engineering and construction conglomerate led by the Consunji family, has received approval from its stockholders to raise funds amounting to PHP 10 billion. This financial move is aimed at facilitating the company’s acquisition of Cemex Holdings Philippines Inc. The decision came after a special stockholders meeting organized by DMCI Holdings on October 15, 2024.
During this meeting, stockholders agreed to the plan to issue 10 million preferred shares. These shares are intended to be issued to Dacon Corp., an affiliated company, as part of the financial arrangement. The objective of this capital raising initiative is to secure the necessary funds for acquiring a significant stake in Cemex Holdings Philippines Inc.
DMCI’s proposed acquisition involves purchasing a 56.75 percent stake in Cemex’s parent firm, Cemex Asian Southeast Corp. Cemex Holdings Philippines is a major player in the cement industry within the country, making this acquisition a strategic move for DMCI Holdings. The deal is valued at approximately PHP 10 billion.
Dacon Corp., the entity set to receive the preferred shares, is a closely affiliated company within the Consunji family’s business network. The issuance of these shares to Dacon Corp. forms a critical part of the financing strategy for the Cemex acquisition. This move is expected to strengthen DMCI’s position in the construction and infrastructure sectors by incorporating Cemex’s cement production capabilities.
The decision to raise PHP 10 billion through preferred shares follows DMCI’s strategic focus on expanding its operations and market presence. Cemex Holdings Philippines Inc. is viewed as a valuable addition to DMCI’s portfolio, aligning with the company’s long-term growth objectives. The acquisition is anticipated to enhance DMCI’s competitive edge in the construction industry by leveraging Cemex’s established reputation and resources.
DMCI Holdings’ chairman, Isidro A. Consunji, has been a driving force behind the company’s growth strategies. Under his leadership, the company has pursued various opportunities to enhance its market position, as evidenced by this latest venture. By acquiring a majority stake in Cemex Holdings Philippines Inc., DMCI aims to capitalize on the increasing demand for construction materials driven by infrastructure development projects in the country.
The special stockholders meeting also provided an opportunity for DMCI Holdings to engage with its investors and communicate the strategic rationale behind the acquisition. Transparency and effective communication with shareholders played a crucial role in securing the necessary approvals for the fundraising initiative.
This development marks a significant step in DMCI Holdings’ growth trajectory. The successful acquisition of Cemex Holdings Philippines Inc. would enable DMCI to expand its influence in the construction and infrastructure sectors, leveraging Cemex’s production capabilities to meet the growing demand for building materials.
The PHP 10 billion fundraising plan is part of DMCI’s broader strategic vision to enhance its operational capabilities and market presence. This move is expected to have a tangible impact on DMCI’s performance and competitive positioning in the industry.