The investment represents “significant opportunities and potential to increase shareholder value,” the company said. “The business shall build on the management of technical expertise of Phinma, as well as its years of experience in the cement industry.”
Further details of the investment – including the number of shares to be acquired and the purchase price – have yet to be finalised. The transaction is also still subject to approval by the Philippine’s Securities and Exchange Commission.
Phinma currently holds investments in manufacturing steel products, property, business process outsourcing, education, and energy.
The Philippines cement market has been under press recently, as demand has slowed. There is, however, considerable potential for the sector on the back of government commitments to infrastructure spending. As a result, a number of existing players in the cement industry are expanding capacity to meet expected growth in demand.
