Seacem sells new shares

MANILA, Philippines - Southeast Asia Cement Holdings Inc. (Seacem), fresh from unloading its stake in Lafarge Republic Inc., plans to sell new shares to increase its public ownership and remain in the local bourse.

“The company’s board of directors authorized the issuance of new shares to investors who would qualify as public shareholders in order to increase the company’s public float,” Seacem said in a disclosure.

The sale of up to 600 million shares will be completed on or before June 30, 2013 “in order to avoid delisting of the company for non-compliance with the minimum public ownership requirement,” it added.

To date, it has a 2.41-percent public float, way below the 10 percent required by the local bourse to avoid trading suspension and delisting.

Shares of Seacem were last traded in the local bourse at P2.40 apiece on Dec. 28, 2012.

Seacem said it has yet to decide on the use of the proceeds from the share sale.

Given the share sale, the ownership of principal shareholders Calumboyan Holdings Inc. (55.88 percent), Lafarge Holdings Philippines Inc. (30.64 percent), Seacem Silos Inc. (1.5 percent) and public shareholders (11.98 percent) will be cut to 56.68 percent, 31.08 percent, 1.53 percent and 10.72 percent, respectively.

Early this week, Seacem finalized the divestment of its 1.11 billion shares worth P11.35 billion in listed cement firm Lafarge.

Seacem sold subsidiary Seacem Silos Inc. for P350 million as it prepares for opportunities to deal with third-party investors.

“Seacem’s sale of Lafarge and Seacem Silos shares will give Seacem the flexibility to restructure the financial position of its assets or for its major shareholders to enter into transactions with third parties interested in purchasing Seacem,” the company earlier said.

This leaves the company with no assets and ready for a firm wanting to list in the local bourse via the backdoor route.

A backdoor listing, which offers a cheaper and faster way to achieve a listing status, occurs when a listed firm is acquired by an unlisted firm and the merger will result in a change in business.

Seacem booked P2.868 billion in profits last year, more than four times the P669 million a year earlier mainly due to its share in the income of associate Republic Cement Corp.

Republic Cement, which is now Lafarge, was incorporated in 1955 to primarily engage in the manufacture, development and sale of cement, marble and all other kinds and classes of building materials. Its plants are located in Bulacan, Batangas and Rizal.