Boston, MA 04/21/2014 (wallstreetpr) – The Spanish tax authorities imposed a hefty fine of 455 million euro on the division of Cemex SAB de CV (NYSE:CX) based there. This is on account of an income tax audit, which found irregularities in the accounts filed by the company. But, Cemex is deciding to go in appeal against this harsh ruling. The company had shown substantial losses between 2006 and 2009 which have not been accepted by the tax authorities of Spain.
The company stated that this liability could negatively affect the financial results and adversely impact its liquidity, as well. Cemex SAB de CV (NYSE:CX) had made acquisitions of two of Spain’s largest cement manufactures in 1992 and continues to be the single largest cement provider in the country. CX is also considering the acquisition of some assets being divested by other cement majors, Holcim and Lafarge at discounted rates, although, Cemex SAB de CV (NYSE:CX) already has a debt of $16 billion due to their previous acquisitions. But, it is suggested that this move would enhance the company’s presence in Europe.
Ventika, a subsidiary company that has been established at a cost of $650 million has been funded to the extent of 25% by CX in the form of equity, and the balance amount of 75% is being obtained from different banks. This project based in a special wind friendly area of Mexico, mainly in General Bravo, Nuevo Leone, and will comprise of two units. These are expected to generate 126 mega watts of renewable energy each and would be operational by 2016 and will be implemented in accordance with the Mexican Energy Regulatory Commission.
The debt will be raised mainly from Santander, Bancomext, Banobras, Nafin and the North American Development Bank, whereas the equity partners will include Fisterra Energy, CEMEX and some private investors. The financial advisor to the project would be Evercore whereas, Santander would be its main banking agent. Banamex is the trustee and Acciona Energía is the EPC and O&M contractor for the project.
