Mexico: The board of directors of Grupo Cementos de Chihuahua (GCC) has proposed a new corporate structure to simplify GCC’s controlling shareholder structure and make such structure clearer to investors. The restructuring, if approved by GCC’s shareholders, will consist of a merger between two entities controlling GCC into GCC, in which GCC would be the surviving entity.
Once the corporate restructuring is finalised, GCC’s principal direct shareholder will be Cancem, which will hold a majority and controlling interest in the shares of GCC. In addition, as a result of the proposed corporate restructuring, if approved by GCC’s shareholders as proposed, Cemex will own a direct stake equal to 23% of the outstanding share capital of GCC and a minority stake in Camcem. Cemex has expressed that it expects to hold its interest in Camcem as a long-term investment and will therefore remain an indirect minority shareholder of GCC.
The proposed corporate restructuring has been approved by the Mexican competition regulator, the Comisión Federal de Competencia Económica, and will require the approval of GCC’s shareholders to be completed.
