Cemex 1999 Annual Report Download - page 37

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Creation of CEMEX Asia Holdings. In 1999, CEMEX formed an
investment holding company with third-party capital to take advantage
of attractive investment opportunities in cement-related assets within
southeast Asia.
The company, CEMEX Asia Holdings (CAH), has committed capital
totaling US$1.2 billion. As its initial investment, CAH purchased
the economic rights to CEMEX’s Philippine operations. CEMEX will
receive a technical assistance fee from the operating affiliates of
CAH as consideration for its role in supporting the acquired assets
and for contributing its industry expertise.
As a result of this transaction, which was completed during January
2000, CEMEX’s ownership of CAH stands at 77%, while the group of
investors owns 23%. The group of investors includes the AIG Asian
Infrastructure Fund II, L.P.; GIC Special Investments Pte Ltd.; Metro-
politan Life Insurance Company; the Asia Equity Infrastructure Fund,
L.P.; Capital International Asia CDPQ Inc.; and a consortium of
investors led by Navis Capital Partners.
Warrant issuance. In December 1999, CEMEX closed and settled a
warrant placement with a corresponding hedge. CEMEX sold 105
million warrants and an equal number of CPOs through a forward
transaction with a group of seven banks. The warrants were listed
simultaneously on the New York Stock Exchange (NYSE) under the
ticker symbol CX.WS and on the Bolsa Mexicana de Valores under
the ticker symbol CMX212E-DC059.
Net proceeds received from these transactions were approximately
US$500 million, which were used to reduce debt.
92 93 94 95 96 97 98
Dividends per share
US dollars
SEC registration and NYSE listing. To enhance its transparency,
visibility, and liquidity, the company listed, on September 15th, a
new American Depository Share (ADS) on the New York Stock
Exchange (NYSE) under the ticker symbol “CX.”
Each ADS represents five CPO shares (Certificados de Participa-
ción Ordinaria), which are listed on the Bolsa Mexicana de
Valores under the ticker symbol “CEMEXCPO.”
At the annual shareholders meeting on April 29, 1999,
stockholders approved the dividend program for the year.
Under this dividend program, CEMEX shareholders elected
to receive a cash dividend of $1.30 pesos per share or its
equivalent in CPOs.
Of the shareholders, 86.27% elected the CPOs, while the
remaining 13.73% elected to receive the $1.30 peso cash
dividend, for a total of approximately $255 million pesos
(US$27 million) paid by CEMEX.
*As a result of CEMEX’s Share Repurchase Program in 1997, 24 million CPO shares were
acquired, totaling approximately US$119 million. The CPO shares acquired through this pro-
gram account for approximately 2% of the CPO shares outstanding (see note 5 to Selected
Consolidated Financial Information).
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