One of Philippines' richest family, Consunji is investing $177 million into their own company, DMCI Holdings. As Forbes shared, DMCI announced this financial move to the public through the Philippine stock exchange on August 20, 2024.
Now, the purpose of this investment is to help DMCI buy a cement business in the Philippines from Cemex, a Mexican company.
Another report from PhilStar revealed that the Consunji family's private holding company, Dacon, will buy 10,000 preferred shares of DMCI at 1,000 pesos each. These shares will offer an annual dividend yield of 4% and can be converted into common shares at DMCI's discretion.
In April, according to International Cement Review, DMCI, along with two other companies controlled by the Consunji family, agreed to acquire Cemex's Philippine cement business for $305.6 million. The deal is expected to be completed later this year and is aimed at boosting DMCI's construction, property, power, and mining sectors by integrating cement manufacturing into its portfolio. The investment will not directly benefit Cemex and will be in favor of DMCI Holdings.
"Cement manufacturing will be a valuable addition to our business portfolio. We aim to leverage our expertise and open new revenue streams through this deal," DMCI's chairman, Isidro Consunji, said.
At the present, Cemex Philippines is one of the largest cement producers in the country, producing 5.7 million tons annually, with plans to add 1.5 million tons in new capacity by the end of the year.
Cemex has not directly commented on the Consunji family's investment in DMCI Holdings to purchase their company. However, the sale of their Philippine cement business to DMCI will also be part of Cemex's strategy in streamlining operations and core market activities.
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