CEMEX HOLDINGS Philippines, Inc. (CHP) is changing its corporate name to Concreat Holdings Philippines, Inc. following a change in ownership.
The name change was approved during a special stockholders’ meeting on Wednesday, CHP said in a regulatory filing.
CHP said the name change was due to the change in control of the beneficial owner of its principal stockholder, Cemex Asian South East Corp. (CASEC).
The cement producer also announced an increase in the number of board directors to nine from eight to expand shareholder representation on the company’s board.
In December last year, Consunji-led companies DMCI Holdings, Inc., Semirara Mining and Power Corp. (SMPC), and Dacon Corp. finalized the purchase of CASEC, which owned 89.86% of CHP.
The $272-million deal marked the Consunji group’s entry into the cement manufacturing business.
DMCI acquired a 51% effective stake in CHP, while Dacon Corp. and SMPC took 29% and 10%, respectively, at the financial close of the transaction.
Last month, CHP President and Chief Executive Officer Herbert M. Consunji said the company is expected to turn profitable in three years.
He added that the cement manufacturer plans to implement operational efficiencies to strengthen its financial performance.
“It cannot be immediate because we are coming from a net loss,” Mr. Consunji said.
For the first nine months, CHP widened its net loss by 131% to P2.87 billion due to lower cement prices, higher financial expenses, and increased income tax expenses.
Revenue declined by 9.4% to P12.21 billion due to intense industry competition and lower cement prices.
CHP shares fell by 0.67% or one centavo to P1.48 apiece on Wednesday. — Revin Mikhael D. Ochave
