Recent use case for MARKABLES data in Philippines

DMCI Holdings Inc. is a company listed on the Philippines Stock Exchange (PSE:DMC). DMCI is a leading engineering and management conglomerate in the Philippines engaged in construction, real estate, mining, power, water, and cement.

In 2024, DMCI acquired a majority shareholding in Cemex Asian Sout East Corporation (CASEC). CASEC owns 89.86% of Cemex Holdings Philippines, Inc. (CHP), a leading cement company listed in the Philippine Stock Exchange under the ticker name CHP. CHP is the owner of Cemex’s main operating subsidiaries in the Philippines, APO Cement Corporation and Solid Cement Corporation, which are engaged in the production, sale, and distribution of cement and other buildings materials in the Philippines; and of 40% indirect equity interest in each of APO Land & Quarry Corporation (“ALQC”) and Island Quarry and Aggregates Corporation (“IQAC”). CHP’s trademarks include Apo Cement, Apo Portland, Apo Masonry, Apo Pozzolan, Apo High Strength, Semento Filipino, Pioneer Cement, Island, Rizal and Palitada King Masonry.

Seller CEMEX S.A.B. de C.V., known as Cemex, is a Mexican multinational cement, ready-mix concrete and aggregates supplier active in more than 50 countries. In 2020 it was ranked as the 5th largest cement company (by amount of cement produced annually) in the world, at 87.09 million tonnes.

Within the purchase price allocation, DMCI retained an external valuation specialist to value CHP’s trademarks. The valuation specialist determined a royalty rate of 2.5% for cement production companies, based on comparable data from MARKABLES. The resulting trademark value accounted for approximately 10% of CHP’s enterprise value.

DMCI’s auditor SGV (SyCip Gorres Velayo & Co., a member firm of EY) assessed the competence, capabilities and objectivity of the external valuation specialist and reviewed the methodologies and assumptions used in arriving at the fair values of the trademark acquired.