Cemex and GCC announce offering to sell 23% stake in GCC

Cemex, SAB de CV and Grupo Cementos de Chihuahua, SAB de CV (GCC) announced that they will commence offerings that are expected to include an aggregate of up to 76,483,332 shares of common stock of GCC, currently owned by Cemex at a price range of between MXN95.00 to 115.00/share,

Cemex currently directly owns 23 per cent of the outstanding share capital of GCC and, additionally, a minority interest in CAMCEM, an entity which owns a majority interest in GCC as a result of GCC’s previously-announced restructuring. Cemex intends to sell the shares in the context of Cemex’s asset divestiture plans.

If the offer is a success, Cemex would receive around US$375m according to analyst estimates and the company would be able to reduce its total debt US$13,148m. This would be enable Cemex to lower its leverage to 2.8 per cent, significantly improving its profile and meeting its assets sales targets.