Cementos Argos Approved Conversion of Preferred Shares into Ordinary Shares
In a significant move during its shareholders' meeting, Cementos Argos, a leading cement company under the Argos Group, has approved the conversion of preferred shares into ordinary shares.
During the ordinary meeting held on March 18, 2024, Cementos Argos' shareholders took pivotal steps toward enhancing the company's capital structure and market positioning.
One of the key approvals was the conversion program of preferred shares into ordinary shares with an exchange ratio of 0.85 ordinary shares for 1 preferred share. This rate represents approximately a 12% premium over the average of the last five years and aligns with recommendations from independent investment banking. The proposal garnered favorable votes from over 80% of the circulating ordinary and preferred shares, subject to the approval of Colombia's Financial Superintendency.
This strategic maneuver aims to increase the company's attractiveness to international indices, such as the MSCI Emerging Markets, potentially drawing additional investment flows to its ordinary shares. The shareholders also reconfirmed the board of directors, consisting of proprietary members Jorge Mario Velásquez, Alejandro Piedrahita, and Rafael Olivella, alongside independent members Carlos Gustavo Arrieta, Cecilia Rodríguez, Carolina Soto, and León Teicher.
Moreover, the assembly authorized statutory reforms to convene an additional meeting in the second quarter of 2024. This meeting, unique to this year, will propose the approval of a second phase of dividends and another phase of the share repurchase program as part of Sprint 2.0. Sprint represents Argos' initiative aimed at revitalizing its share price, indicating a proactive approach to shareholder value enhancement.
