CHIHUAHUA, Mexico, Sept. 27, 2017 (GLOBE NEWSWIRE) -- Grupo Cementos de Chihuahua, S.A.B. de C.V. (“GCC”) (BMV:GCC*) informs the market that CEMEX, S.A.B de C.V (“CEMEX”) (NYSE:CX) (BMV:CEMEXCPO) sold all its remaining direct equity position in GCC—31,483,332 shares, representing approximately 9.47% of GCC´s shares—to two financial institutions. CEMEX also informed GCC that it entered into 18-month equity forward agreements with respect to the GCC shares.
GCC's Chief Financial Officer, Luis Carlos Arias said: “Increasing share liquidity is one of management’s main financial objectives. We believe that today’s transaction will benefit GCC’s public market shareholders by increasing the total share float in the foreseeable future and consequently trading volumes.” Since the February re-IPO, through which CEMEX sold GCC shares representing approximately 13.53% of outstanding shares, the average daily trading volume of GCC stock on the Mexican Stock Exchange has increased to around 300,000 shares per day, from almost zero before.
GCC is not a party to these forward equity agreements, which enable CEMEX to retain exposure to GCC’s stock price. The transactions have an 18-month tenor with the option to unwind them early.
These transactions do not affect CEMEX’s minority, indirect ownership interest in CAMCEM, the holder of 51.62% of GCC’s capital stock.
| For further information, contact: | |
| GCC Investor Relations: | |
| Ricardo Martinez +52 (614) 442 3176 rmartinezg@gcc.com | Daniel Wilson, Zemi Communications +1 212 689 9560 dbmwilson@zemi.com |
About GCC
GCC is a leading supplier of cement, concrete, aggregates, and construction‐related services in the United States and Mexico, with an annual cement production capacity of 5.1 million metric tons. Founded in 1941, the Company’s shares are listed on the Mexican Stock Exchange under the ticker symbol GCC.
Forward Looking Statements
This press release may contain forward-looking statements. All statements that are not clearly historical in nature are forward-looking, and the words “anticipate,” “believe,” “expect,” “estimate,” “intend,” “project” and similar expressions are generally intended to identify forward-looking statements. These statements are subject to risks and uncertainties including, among others, changes in macroeconomic, political, governmental or business conditions in the markets where GCC operates; changes in interest rates, inflation rates and currency exchange rates; performance of the construction industry; pricing, business strategy, and other factors. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may differ materially from the beliefs, projections, and estimates described herein. GCC assumes no obligation to update the information contained in this press release.