This decision follows discussions with a wide range of CEMEX shareholders and reflects the feedback received.
“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 focused 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 decision is said to demonstrate the Mexican global building materials giant’s commitment to maintaining a constructive and responsive dialogue with its investors. CEMEX’s board of directors and management are said to be highly focused on accountability to shareholders and on creating long term shareholder value.
In order 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.
