News sources have reported earlier this week that representatives of Cemex – Led by the company’s Head of Colombian Operations, Carlos Jacks – met with potential investors in Bogota on Wednesday 19 September 2012 ahead of the planned listing of minority shares in Cemex Latam Holdings.
Cemex is still waiting for approval from the Superintendencia Financiera de Colombia (SFC) before the transaction can go ahead. As we reported last month, the company is planning to list shares in its subsidiary, Cemex Latam Holdings on the Colombian stock exchange, offering a minority of these publicly to Colombian investors, with a further private listing making the shares available to investors from outside of the country. While it was clear at the time that the prospective move was part of a series of asset-sale alternatives with a view towards minimising debt, it was not clear where exactly it fitted into the company’s wider plans.
With the establishment of the company’s refinancing scheme, as agreed by its creditors on Monday 17 September, things have become clearer. The sale of these Cemex Latam shares has the potential to generate an amount that would go a long way towards covering the US$1 billion pre-payment that Cemex has agreed to make next March, as part of a deal to push maturities back by four years.
It is worth noting that Cemex’s New York-traded stock rose 2.27% on Wednesday to to US$8.56 – as sure a sign of confidence in the company’s plans as any.
Written based on various sources by Jack Davidson.
Read the article online at: https://www.worldcement.com/the-americas/21092012/cemex_latam_meets_investors_colombia_683/