Cemex announced it will not pursue its earlier-announced planned capital increase following consultation with its shareholders.
“As we discussed on Cemex Day, our management team’s priority is to achieve an investment grade capital structure, as the foundation of our value creation strategy” said CEO, Fernando Gonzalez. “We are highly focussed on our long-term strategic objective of maximising shareholder value. After listening to the feedback from our shareholders, we have decided not to pursue the 3.75bn CPO capital increase that had been proposed. We will continue focusing on implementing our stated strategy.” The capital increase was to help Cemex gain flexibility to fund investment opportunities.
To implement this change, and taking into account the applicable legal framework, CEMEX will place a cap on the proposal at its extraordinary general shareholders meeting, such that if the proposal is approved, any share issuance pursuant to the approval will be limited to no more than 1% of Cemex’s currently outstanding shares.
