• Business

    Japan’s Sumitomo to acquire 15% stake in PHINMA’s Philcement

    AnyFans Posted on

    By BusinessWorld,Cedtyclea

    Copyright bworldonline

    Japan’s Sumitomo to acquire 15% stake in PHINMA’s Philcement

    JAPANESE cement firm Sumitomo Osaka Cement Co., Ltd. will acquire a 15% stake in PHINMA Corp. subsidiary Philcement Corp. as the local company seeks to expand its manufacturing operations.

    In a stock exchange disclosure on Wednesday, Philcement said it signed a share subscription agreement with Sumitomo on Sept. 16 for the acquisition, which will be through the issuance of primary shares.

    “The transaction is aligned with Philcement’s strategy and commitment to grow its manufacturing operations and provide Filipino consumers with reliable, high-quality supply of cement products under its legacy brand, Union Cement,” the company said.

    The transaction is expected to close before yearend, subject to the satisfaction of closing conditions. PHINMA will retain majority control after the deal.

    Philcement, 60% owned by PHINMA, manufactures, imports, processes, distributes, and sells cement products. It operates facilities in Bataan, Pampanga, Zamboanga del Norte, and Davao.

    Sumitomo has over 100 years in the global cement industry.

    In 2023, the company sold its 9.22% stake in Holcim Philippines to Holderfin B.V., with Holcim voluntarily delisting from the local stock exchange.

    PHINMA also operates in education, real estate, steel products, and business process outsourcing. Last month, it increased capital expenditure to P5 billion from P3.8 billion to fund new projects, including a Davao terminal for Philcement.

    The conglomerate posted a P455.06-million net loss for the first half, wider than P117.89 million a year earlier.

    On Thursday, PHINMA shares rose 2.42% or 40 centavos to P16.90. — Beatriz Marie D. Cruz

    You Might Also Like