Cemex Plots Colombia Float

Cemex is aiming to IPO the Cemex Latam unit holding its regional ex-Mexico assets, it says, as part of its broader global asset sale strategy. The subsidiary, holding substantially all of the Mexican cement maker’s assets in Central America and South America, is to list in Colombia, selling shares there and also through an international portion. Cemex does not give details as to the size, but analysts estimate the stake to be foated, likely 25%, could be worth about $750m-$1.0bn, an amount that would help with the amortization payment contemplated under the new debt refinancing agreement Cemex is negotiating with creditors. The move appeared to be taken as additional positive news – following Monday’s announcement of creditor acceptance of a refinancing operation – with both bonds and shares rising. If conditions were not ripe for the sale of shares, undergoing the listing only could be a temporary option, according to sources following the process. “Although the $1.0bn amount the company is paying down does not improve materially its total debt situation, we believe the [debt refinancing and equity sale] bring a credible solution for Cemex’s liquidity situation,” Credit Suisse says in an equity report. CS expects an 8.0x EV/Ebitda multiple for the Latam unit. Cemex announced this week that it had reached 90% acceptance in its offer to holders to push out to 2017-2018 debt due 2014 totaling more than $7bn. It has extended the offer through September 7 in the hopes of getting more than 95%. Cemex bonds were heard up a point Wednesday, and its CPO shares rose 4.19% to MXP10.69.