CEMEX announces ordinary shareholders' meeting; proposes increase in cash dividend with option of reinvestment
April 3, 1998
CEMEX´s Board of Directors announced today its ordinary shareholders´ meeting will take place on April 23, 1998 in Monterrey, Mexico. The agenda for the shareholders´ meeting will include the shareholders´ vote on a proposed dividend for the fiscal year ended December 31, 1997.
The dividend proposed is a cash dividend of Ps. 1.00 per share. In addition, shareholders would have the option to reinvest the cash dividend received by subscribing to A shares represented by CPOs, offered at a price which will be approximately 80% of the average market price prior to the meeting. The final subscription price will be announced on the day of the shareholders´ meeting, April 23, 1998. The new shares would be offered through an increase in shareholders´ equity for the amount reinvested. The dividend represents a payout of 20% of CEMEX´s cash earnings per share during 1997.
Rodrigo Treviño, Chief Financial Officer of CEMEX, explained, "The proposed dividend allows CEMEX shareholders the flexibility to receive a cash dividend or reinvest the dividend at an attractive price in respect to the market price. We will use the reinvested dividend proceeds to reduce debt at the holding company level."
Investors may attain additional information regarding the dividend plan by calling either Carlos Jacks at (528) 328-3393, Bradley Johns at (528) 328-3305, or Amy Figueroa at (212) 317-6008.
Founded in 1906, CEMEX is the largest cement producer in the Americas and one of the three most important producers of cement in the world, with a production capacity of approximately 51 million metric tons per year. CEMEX is the market leader in its operations in Mexico, Spain, Venezuela, Panama, and the Dominican Republic; and has a significant presence in the markets of Colombia, the Caribbean, and the southwest region of the United States of America.