CEMEX Holdings Philippines, Inc. (CHP) sold its entire stake in Swiss-based Cemex Asia Research AG (CAR) to Cemex Innovation Holding AG for $900,459 (P53 million) to streamline its business.
CHP signed a share purchase agreement with Cemex Innovation on Nov. 26 involving the sale of 118,849 shares.
“CHP and its subsidiaries have secured access to trademarks and intangible assets sublicensed by CAR necessary for their operations independently from CAR,” CHP said in a regulatory filing on Wednesday.
“CAR’s functions as a subsidiary of CHP are no longer required by CHP and its subsidiaries,” it added.
Established in Switzerland, CAR is a foreign subsidiary of CHP.
The company is the licensee under certain license agreements with Cemex and its subsidiaries for certain trademarks and intangible assets, which it sublicensed to CHP and its domestic subsidiaries.
Cemex Innovation is an affiliate of Mexican operating and holding company Cemex S.A.B. de C.V.
For the first nine months, CHP expanded its net loss by 131% to P2.87 billion on lower cement prices, higher financial expenses, and higher income tax expenses year over year.
Revenue fell by 9.4% to P12.21 billion as a result of intense industry competition and lower cement prices.
CHP shares dropped by 2.96%, or five centavos, to P1.64 per share on Wednesday. — Revin Mikhael D. Ochave