CEMEX raises US$500 million in equity capital
December 16, 1999
CEMEX, S.A. de C.V. (NYSE: CX) announced today the successful closing and settlement of the warrant placement and the corresponding hedge. CEMEX sold 105 million warrants and an equal number of CPOs, entering into a forward transaction with a group of seven banks.
Net proceeds received from these transactions will be approximately US$500 million dollars which will be used to reduce short-term debt.
Rodrigo Treviño, CEMEX´s Chief Financial Officer said: “We are pleased with the results of the warrant offering and the closing of the corresponding forward transactions. The strong participation by shareholders and executives demonstrates confidence in the future prospects of the company and evidences management´s commitment to create shareholder value. In addition, these transactions strengthen our capital structure, providing flexibility to execute our business strategy.”
Founded in 1906, CEMEX is one of the three largest cement companies in the world with approximately 65 million metric tons of production capacity. Through operating subsidiaries positioned in four continents, CEMEX is engaged in the production, distribution, marketing and sale of cement, ready-mix concrete, aggregates and clinker. In addition, the company is the world´s leading producer of white cement and the world´s largest trader of cement and clinker.