Huaxin Cement announced plans to acquire shares in Holcim Philippines Inc. through its controlling wholly-owned subsidiary Huaxin Central Asia Investment in two stages, involving indirect and direct holdings by Holderfin B.V. In the first stage, based on an enterprise value of 780 million US dollars for 100 percent of HPI's equity, it will acquire a 67.62 percent stake in HPI indirectly by purchasing shares in three holding companies, for a consideration of approximately 527 million US dollars. In the second stage, after three years, it may acquire the approximately 31.38 percent stake directly held by the seller through the exercise of a call option or put option, for a consideration of no less than 280 million US dollars. This transaction constitutes a connected transaction, but Huaxin Cement believes it will benefit its overseas business development and expansion into new markets, and HPI is expected to become another important profit contributor for it in Southeast Asia. HPI has four large cement plants and one grinding station in the Philippines, with an annual clinker capacity of 5.2 million tonnes and cement capacity of 9 million tonnes. In 2025, its revenue was 375 million US dollars and net profit was negative 65.271 million US dollars.
Huaxin Cement Co Ltd AAcquiring HPI expands overseas business and market presence, despite HPI's current losses.
HPI is the acquisition target; deal may provide liquidity but its profitability is negative.