CEMEX announces plans to reduce net debt by US$162 MM from the announced Banacci transaction
May 22, 2001
CEMEX, S.A. de C.V. (NYSE: CX), announced today that it intends to accept the CITIGROUP offer on 1.32% ownership in BANACCI shares. At current BANACCI share market prices, this would amount to approximately US$162 million. This BANACCI position has been held for close to ten years and was bought during the bank privatization process. The decision to sell this long-term investment, will lead to the recognition of an extraordinary gain of approximately US$130 million during the second quarter of 2001 at current BANACCI market price levels.
Rodrigo Treviño, Chief Financial Officer, said: "We view this investment by CITIGROUP as an important vote of confidence in the Mexican economy and its prospects as we converge with our NAFTA partners. The proceeds from the BANACCI shares will lead to an immediate reduction of net debt of about US$162 million. This transaction will significantly strengthen our capital structure and will allow us to attain our net debt to EBITDA target sooner than expected. It will also support the execution of our share buyback program. To the best of our knowledge there is no official offer yet and such offer is likely to be subject to legal and regulatory approvals, so there is no assurance at this stage that the transaction will be completed."
CEMEX is one of the three largest cement companies in the world, with approximately 78 million metric tons of production capacity. It is also the world's largest trader of cement and its leading producer of white cement. CEMEX is engaged in the production, distribution, marketing, and sale of cement, ready-mix concrete, aggregates, and clinker through operating subsidiaries on four continents. For more information, visit www.cemex.com.
Daniel Pérez Whitaker
(528) 152 2747
(528) 328 3631
José Antonio González