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Cemex SAB de CV (NYSE:CX), a global leader in the building materials industry with annual revenues of $17.25 billion and a market capitalization of $8.82 billion, announced today that it has finalized the sale of its operations in the Dominican Republic to Cementos Progreso Holdings, S.L. According to InvestingPro analysis, Cemex maintains a strong financial position with a healthy Altman Z-Score of 5.72, indicating low bankruptcy risk. The transaction also includes Cemex’s business interests in Haiti. The deal, valued at $950 million before adjustments for cash, debt, and working capital at closing, encompasses a cement plant with two production lines in the Dominican Republic, as well as related cement, concrete, and aggregates assets, marine terminals, and a commercialization business in Haiti.
The strategic divestiture is part of Cemex’s ongoing efforts to optimize its asset portfolio and focus on strengthening its core businesses. The sale to Cementos Progreso Holdings, a subsidiary and its strategic partners, is expected to enhance Cemex’s financial flexibility and contribute to its long-term growth objectives. InvestingPro analysis suggests the company is currently undervalued, with additional ProTips available for subscribers regarding management’s strategic initiatives and growth prospects.
This transaction reflects Cemex’s commitment to disciplined capital allocation and asset-light business model, which aims to maximize shareholder value. The company’s decision to sell these particular assets was made after careful consideration of the competitive landscape and the potential for these operations under new ownership.
Cemex, headquartered in Monterrey, Nuevo Leon, Mexico, operates under the standards of the New York Stock Exchange and adheres to the reporting requirements of the Securities and Exchange Commission (SEC). This sale was reported in a Form 6-K filing, which provides an update on significant corporate events to the SEC for foreign private issuers.
Investors and stakeholders of Cemex may anticipate that the proceeds from this divestiture will be used in accordance with the company’s strategic priorities, which include reducing debt and investing in high-growth markets. With an EBITDA of $3.09 billion and a strong Piotroski Score of 7, InvestingPro data reveals robust financial health metrics. For comprehensive analysis including Fair Value estimates and growth projections, investors can access the detailed Pro Research Report, available exclusively to InvestingPro subscribers. The information regarding the sale is based on a press release statement issued by Cemex.
In other recent news, CEMEX S.A.B. de C.V. has reported robust growth and resilience despite challenges, with a year-over-year increase in net income of over 200%. The company recently finalized the sale of its operations in the Philippines, a transaction amounting to approximately $800 million. CEMEX also announced a trustee change for its CPO Trust, with Banco Citi México taking over the role, ensuring no impact on operations.
Additionally, the company paid the third installment of its declared cash dividend for 2024, amounting to $30 million. This payout is part of a larger dividend totaling $120 million, which is being distributed in four equal installments.
RBC Capital recently adjusted its stance on CEMEX, downgrading the company’s stock from Sector Perform to Underperform amid concerns about potential challenges for the Mexico-based cement giant. Despite these challenges, CEMEX remains profitable, generating $17.25 billion in revenue over the last twelve months. These are recent developments and do not predict the future of the company.
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