NEWS

By Miguel R. Camus | Philippine Daily Inquirer | February 7, 2024, 2:08AM

Cemex Holdings Philippines shares skyrocketed on Tuesday, fueled by takeover rumors that caused its share price to sizzle by nearly 80 percent over the past two days.

Cemex Philippines shares soared about 42 percent to P1.56 each on Tuesday—blowing past the 2023 tender offer price of P1.30 that was launched by a major shareholder and creating a multi-year high for the cement giant.

Rumors spread on Tuesday that the Consunij family conglomerate DMCI Holdings is buying Cemex Philippines as an integration play with its core businesses such as housing (DMCI Homes), infrastructure and coal mining (Semirara Mining and Power), since coal is used in the cement manufacturing process.

DMCI, which previously expressed an interest to enter the cement business, appeared to deny the talks when reached by Biz Buzz.

“I am not aware as been busy with our [other projects],” a very highly placed source within the conglomerate said. This source clarified that he was aware of the rumors that were currently circulating in the market.

Regardless, the price action suggests that something is brewing, especially in a market where price swings tend to precede formal news announcements.

It’s good news overall for more recent shareholders of Cemex Philippines. This is not the case for long-term bag holders, especially to those who bought during the company’s IPO at P10.75 per share eight years ago.

Source: Inquirer.net

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