SMC completes tender offer for Eagle Cement shares

MANILA, Philippines — San Miguel Corp. (SMC), the country’s diversified conglomerate, now owns 99.9 percent of Eagle Cement Corp. after completing its tender offer to shareholders of the listed cement firm owned by the Ang family.

SMC, through San Miguel Equity Investments Inc (SMEII), completed its tender offer for 572.8 million common shares representing 11.45 percent of the total issued and outstanding common shares of Eagle Cement. The tendered shares were crossed through the Philippine Stock Exchange (PSE) yesterday.

SMEII paid P12.6 billion for the tendered shares.

“With the completion of the tender offer, SMEII now owns a total of 4.6 billion common shares representing 99.9581 percent of the total issued and outstanding common shares of Eagle Cement Corp.,” SMC chief finance officer, treasurer and chief information officer Ferdinand Constantino said yesterday.

SMC said that its move to acquire Eagle Cement is aimed at strengthening it’s presence in the cement business.

“The acquisition of Eagle Cement offers a complementary approach to the current investment strategy of SMC in the cement industry that will increase its foothold in the cement business and provide the opportunity to implement its plan to expand its cement business,” SMC said.

SMC is headed by tycoon Ramon Ang as its president and CEO. He is also chairman, president and CEO of Far East Holdings, a selling shareholder of Eagle Cement. He is also the chairman of Eagle Cement.

His son John Paul Ang, meanwhile, is a member of the board of SMC and president and CEO of Eagle Cement.

With the sale to SMC, Eagle Cement will soon be delisted.

The company raked in P13.7 billion in revenue in the first half of 2022, higher than the P11 billion churned in a year ago.

Net income amounted to P3 billion, lower than the P3.7 billion recorded a year ago.

Eagle Cement is based in Bulacan. Its brand of cement are Eagle Cement Advance and Eagle Cement Exceed while its bulk cement is sold under the Eagle Cement Strongcem brand.