PHINMA Corp. on Thursday said it is taking in a $50-million investment through an issuance of preferred shares to a Vietnamese cement firm.
In its disclosure, Phinma said it signed a deal with Song Lam Cement Joint Stock Co., Vissai Ninh Binh Joint Stock Co. and Hoang Minh Truong.
Song Lam, a subsidiary of Vissai, is the largest privately owned cement manufacturer in Vietnam and exports to 37 countries including the Philippines. Song Lam owns the largest cement plant in Vietnam and will be a major supplier of Philcement Corp., a 60-percent owned subsidiary of Phinma.
“The preferred shares will be entitled to receive annual, fixed cumulative dividends of 7.5 percent. The preferred shares shall be convertible to common shares. Phinma will also be entitled to nominate one member of the board of directors. as well as the chief financial officer of the company,” Phinma said in its disclosure.
Phinma returned to the cement industry after it registered its cement company PhilCement Corp. in September 2017, aiming to produce approximately 3 million metric tons (MMT) of cement per year.
In one of its disclosures, the company bared plans to “engage in processing, marketing, importing, trading, selling and distributing cement, cement products and other by-products.”
The company, however, will start as a cement importer.
Phinma imported 50,000 MT of cement, or approximately 2 million sacks, from Vietnam. It plans to import the same amount per quarter for a total of 200,000 MT a year.
Philcement is headed by Eduardo Sahagun, a retired chief executive of Holcim Philippines Inc. who joined Phinma less than a year after retiring.