PSE Circular for Brokers No. 2098-99

August 24, 1999 PSE CIRCULAR FOR BROKERS NO. 2098-99 20 August 1999 SECURITIES AND EXCHANGE COMMISSION SEC FORM 11-C CURRENT REPORT UNDER SECTION 11 OF THE REVISED SECURITIES ACT (RSA) AND RSA RULE 11(a)-1(b)(3) THEREUNDER 1. DATE OF REPORT 23 August 1999 2. SEC IDENTIFICATION NUMBER 34371 3. BIR TAX IDENTIFICATION NUMBER 321-000-293-083 4. EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER Alsons Cement Corporation 5. PROVINCE, COUNTRY, OR OTHER JURISDICTION OF INCORPORATION Philippines 6. INDUSTRY CLASSIFICATION CODE (SEC USE ONLY) 7. ADDRESS OF PRINCIPAL OFFICE 3/F Solid House Building, 2285 Pasong Tamo Extension, Makati City 8. TELEPHONE NUMBER 8175506 9. FORMER NAME, OR FORMER ADDRESS IF CHANGED SINCE LAST REPORT Not Applicable 10. SECURITIES REGISTERED PURSUANT TO SECTIONS 4 AND 8 OF THE RSA TITLE OF EACH CLASS # OF SHARES OF COMMONS STOCK OUTSTANDING Common Stock, P1.00 par 1,086,437,255 11. INDICATE THE ITEM NUMBERS REPORTED HEREIN 2 (a)(1) (c) Acquisition or Disposition of Assets ALSONS CEMENT CORPORATION DISPOSITION OF ASSETS In an effort to streamline its operations and reduce its cost structure, the directors and management of Alsons Cement Corporation undertook the sale of 26.42% of its 94.63% stake in Iligan Corporation to Blue Circle Philippines Inc. for US$6,200,000.00. Completed on 20 July 1999, the sale gives Blue Circle shareholdings equivalent to 25% of Iligan Cement's equity. Subsequently, Alsons Cement will issue a convertible note in the sum of US$41,976,489.00 to Blue Circle, which may be converted into either Alsons Cement's remaining shares in Iligan Cement or cash. cdll IMPACT ON OPERATIONS As part of the transaction, Iligan Cement entered into a technical services agreement with Blue Circle that will then enable Alsons Cement management to concentrate on the day-to-day operations of the company's cement lines in Lugait, Misamis Oriental. These include a new kiln that came on-line on 4 January 1999. It must be noted that the company's new kiln was the product of considerable investments made by the company, and requires special attention from management. Therefore, the decision for ICC to enter into a technical services agreement with Blue Circle can be considered the best course of action in light of the amount of focus required by the new line. FINANCIAL IMPACT The sale of Alsons Cement's 26.42% stake in ICC increased minority interests by 511% from PhP24.15mio in June to PhP147.68mio by end-July. Meanwhile, the issuance of the one-year note to Blue Circle will increase Alsons Cement's current liabilities from PhP2.9bn to PhP4.7bn. However, the sale of its stake and the issuance of the one-year note will provide the company with US$49,176,489.00 in cash assets. Going forward, Alsons Cement intends to use the sale and bond issuance proceeds for the settlement of US$41.3mio in long-term debt associated with its expansion project. Similarly, the balance of the funds will be used to retire some PhP300mio of the company's working capital debt. Considering its financial condition and the current state of the market, the company is confident that its decision to divest its investment in Iligan Cement Corporation was a prudent one and will allow it to weather the cyclical downturn in the economy. cd SIGNATURES Pursuant to the requirements of the Revised Securities Act, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. ALSONS CEMENT CORPORATION Issuer Pursuant to the requirements of the RSA, this disclosure statement has been signed by the following persons in the capacities and on the date indicted. By: (SGD.) JONATHAN PATRICK B. LARA Corporate Information Officer (SGD.) TREVOR G. LAU Vice President Business Re-Engineering