PHINMA Corp.'s cement trading unit Philcement Corp. on Friday signed an agreement with Seasia Nectar Port Services Inc. (SNPSI) to takeover and acquire port facilities and land in Bataan.
Philcement and Seasia signed a term sheet for the acquisition of certain “construction-in-progress assets” including the rights to use pier facilities and land currently under lease by the cement firm for its Bataan cement processing terminal, Phinma told Philippine Stock Exchange.
The total consideration for the transaction is P800 million “in the form of an assumption by Philcement of a SNPSI loan in the same principal amount.”
“This investment shall result in operational and cost efficiencies which align with Philcement’s commitment to assure Filipino consumers of reliable, high-quality supply of cement products under its legacy brand Union Cement,” Phinma said.
The cement processing terminal and its port facilities are expected to be functional by the fourth quarter of 2019 and will be used exclusively by Philcement.
“This new agreement and additional investment will be a meaningful part of PHINMA’s strategy to provide cost-efficient and reliable supply of construction materials to our customers,” Eduardo Sahagun, president and CEO of Philcement, said.
Philcement sells and distributes its product to select areas under the brands Union Cement Ultra and Union Cement Super.
Philcement is Phinma’s vehicle in returning to the cement industry, and is envisioned to contribute significantly to the growing demand for reliable and quality cement and construction materials in the country.
Phinma is a public company listed on the PSE. It has investments in education, property development and hospitality. —Ted Cordero/VDS, GMA News