CEMEX's shares are traded on the Mexican stock exchange in the form of Ordinary Participation Certificates, or CPOs, and on the New York Stock Exchange in the form of American Depositary Shares, or ADSs. The depositary bank for CEMEX's ADS program is Citibank, N.A.
|Mexican Stock Exchange||New York Stock Exchange|
|Ticker: CEMEX.CPO||Ticker: CX
What is a CPO?
Our capital stock consists of series A shares and series B shares. Each of our “Certificado de Participación Ordinario” (CPO) represents two series A shares and one series B share. A CEMEX CPO is an equity security that trades on the Mexican Stock Exchange.
What is an ADS?
American Depositary Shares (ADSs) are a means for non-U.S.-based corporations to list their ordinary equity on an American stock exchange. Denominated in US dollars, they confer full rights of ownership to the corporation’s underlying shares, which are held on deposit by a custodian bank in the company’s home country or territory.
What is the ratio of CEMEX’s ADSs to CPOs?
One CEMEX ADS represents ten CEMEX CPOs.
Do all shareholders have the same same voting rights?
Under the terms of the CPO trust agreement, non-Mexican holders of CPOs and ADSs have no voting rights with respect to the A shares underlying those CPOs and ADSs. All ADSs are deemed to be held by non-Mexican nationals. At every shareholders' meeting, the A shares held in the CPO trust are voted in accordance with the vote cast by holders of the majority of A shares held by Mexican nationals and B shares voted at that meeting of shareholders.
Direct Stock Purchase Plan
CEMEX offers a direct purchase plan for its ADSs, with each ADS representing ten CPOs on the Mexican Stock Exchange. The plan is only open to U.S. residents and is designed to provide existing owners of CEMEX's ADSs and new interested investors who would like to participate in the plan with a convenient way to invest and/or increase their investment in CEMEX. The plan allows you to reinvest your dividend.
CEMEX's Depositary Bank, Citibank, N.A., sponsors and administers the plan. CEMEX has agreed to the establishment of the plan by Citibank, N.A., but does not and should not be deemed to sponsor or administer the plan. CEMEX assumes no obligation or liability for the operation of the plan.
To view the plan details, please download the plan’s brochure .
You may enroll in the plan by mail or online.
You can request an enrollment form by calling:
Toll-free at 1-877-CITI-ADS (1-877-248-4237).
Dividends are declared by CEMEX, S.A.B. de C.V.’s shareholders at the Ordinary General Shareholders Meeting. The dividend declaration is usually based upon the recommendation of CEMEX, S.A.B. de C.V.’s board of directors.
At CEMEX, S.A.B. de C.V.’s Ordinary General Shareholders Meeting held in 2009, 2010, 2011, 2012, 2013, 2014, 2015 and 2016, CEMEX, S.A.B. de C.V.’s shareholders approved an increase in the capital stock of the Company in its variable portion through capitalization of retained earnings. For additional information on the 2016 capitalization program please click here.
The following table shows the dividend for the period from 2004 to 2008 and capitalization of retained earnings from 2009 to 2016.
|2016||April 29, 2016||1 new ADS per
25 ADSs held
|2015||April 28, 2015||1 new ADS per
25 ADSs held
|2014||April 22, 2014||1 new ADS per
25 ADSs held
|2013||April 23, 2013||1 new ADS per
25 ADSs held
|2012||March 27, 2012||1 new ADS per
25 ADSs held
|2011||March 25, 2011||1 new ADS per
25 ADSs held
|2010||June 2, 2010||1 new ADS per
25 ADSs held
|2009||May 29, 2009||1 new ADS per
25 ADSs held
|2008||May 6, 2008||0.84||20% discount|
|2007||May 8, 2007||0.75||20% discount|
|2006||May 5, 2006||0.67||20% discount|
|2005||May 6, 2005||0.61||20% discount|
|2004||May 6, 2004||0.51||20% discount|
1Dividends from 2004 to 2005 were declared in Mexican pesos. However, ADS holders electing cash received the dividend in U.S. dollars. These amounts represent the approximate U.S. dollar amount distributed to ADS holders. Dividends from 2006 to 2008 were declared in U.S. dollars.
CEMEX, S.A.B. de C.V.’s board of directors will continue to base their recommendation whether to continue to pay dividends and the amount of those dividends on, among other things, our earnings, cash flow, capital requirements, financial condition, and other relevant factors.
See below for this year’s information on Tax and Cost Basis.
2016 Capitalization Program
At CEMEX, S.A.B. de C.V.'s Ordinary General Shareholders Meeting held on June 30, 2016, CEMEX, S.A.B. de C.V.'s shareholders approved the proposal to increase the capital stock of CEMEX, S.A.B. de C.V in its variable portion through the capitalization of retained earnings. As a result of this increase in the capital stock of CEMEX, S.A.B. de C.V. new shares were issued in the ratio of one new American Depository Share ("ADS") per each 25 ADSs held.
How does the program work?
As part of the 2016 Capitalization Program, on May 10, 2016, CEMEX S.A.B. de C.V.’s shareholders received 1 newly issued ADS per each 25 ADSs held. In case there were additional ADSs that did not add up to 25 ADSs, these did not receive ADS fractions nor its cash equivalent. As an example, if a shareholder owned 1,010 CEMEX ADSs, he received 40 newly issued ADSs.
The last day to acquire CEMEX ADSs with rights to receive new ADSs as a result of the increase in capital stock was April 28, 2016. CEMEX ADS started to trade ex-coupon on April 29, 2016. CEMEX S.A.B. de C.V.'s shareholders that have ADSs received or will recieve the newly issued ADSs through their financial brokers or financial institution. Please note that one ADS represents ten CEMEX CPOs, which are traded on the Mexican Stock Exchange. One CPO represents two series A shares and one series B shares issued by CEMEX, S.A.B. de C.V.
Corporate Action Announcement
|Date:||May 10, 2016||Status:||Final|
|Announcement For:||Stock Allocation|
|Company Name:||CEMEX, S.A.B. de C.V.|
|Company:||CEMEX, S.A.B. de C.V.|
|NYSE Ticker Symbol:||CX|
|Security Type:||American Depositary Shares (ADSs)|
|Ratio (CPO:ORD):||1:2 Series A
:1 Series B
|Underlying Ticker CPO:||CEMEXCPO|
Stock Allocation Announcement
At the Annual Ordinary Shareholders Meeting of CEMEX, S.A.B. de C.V. held on March 31, 2016, its shareholders approved the proposal to increase the capital stock of the company in its variable portion through recapitalization of retained earnings. As a result of this increase in the capital stock, new shares were issued in the ratio of one new ADS for every 25 ADSs held as of record date.
The fractional shares entitlement will be disregarded by CEMEX, S.A.B. de C.V. and no cash in lieu payment will be made by CEMEX for the fractions.
|Ordinary Record Date:||May 3, 2016|
|ADS Record Date:||May 3, 2016|
|Ordinary Payable Date:||May 4, 2016|
|ADS Payable Date:||May 10, 2016|
|Ordinary Ex-Date:||April 29, 2016|
|ADS Issuance Rate:||1 new ADS for every 25 ADSs|
|Fair Market Value:||Not Applicable|
Based on information provided by CEMEX, S.A.B. de C.V. the stock allocation is being treated as a nontaxable event under Internal Revenue Code (IRC) Section 305(a) for U.S. federal income tax purposes, with no income recognized upon receipt of the additional ADSs. Given our further understanding that there was no Mexican tax withheld from the allocation, and that no cash was paid in lieu of fractional shares there will be no Form 1099 reporting required with respect to the allocation.
Under IRC Section 307(a) and U.S. Treasury Regulations Section 1.307-1(a), the basis of shares in a corporation received in a non-taxable distribution (new shares) made with respect to previously held shares (old shares) in that corporation generally is determined by apportioning the basis of the old shares among the old shares and the new shares in proportion to their fair market values, i.e., the new basis of each share is determined by dividing the basis of the old shares by the total number of old and new shares. For example, assume an investor owns one hundred shares in a corporation (old shares) with a basis of $100 and receives, in a non-taxable distribution made with respect to the old shares, four additional shares in the corporation (new shares). The investor will divide its original $100 basis by the 104 old and new shares the investor owns after the distribution so that each of the 104 shares held after the distribution will have a basis of $0.9615. The investor's holding period for the new shares includes the holding period of the old shares.
To download Form 8937 for the corporate action event that took place on May 10, 2016, please click here.
We are not qualified to make individual investor tax/cost basis determinations. Investors are urged to consult independent tax advisors regarding the application of these rules in their particular circumstances.
To access corporate action announcements for CEMEX, S.A.B. de C.V. for previous years, please click here.
To download Form 8937 for the corporate action events that took place on 2015, 2014, 2013, 2012 and 2011, please click here.
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|BBVA Research||Francisco Chávez|
|BNP Paribas||Yassine Touahri|
|BofA - Merrill Lynch||Carlos Peyrelongue|
|BTG Pactual||Gordon Lee|
|Credit Suisse||Vanessa Quiroga|
|Deutsche Bank||Rene Kleyweg|
|Goldman Sachs||Marcio Prado|
|JP Morgan||Adrian Huerta|
|Morgan Stanley||Nikolaj Lippmann|
|Nau Securities||Luis Prieto|
- Please note that the list may not be complete and is subject to change.
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