General Cable sells 60% PDP stake to Anscor

Visual from general Cable website

US-based wire and cable firm General Cable Corp has sold its majority holdings in Phelps Dodge International Philippines Inc (PDP) to its local joint venture partner A Soriano Corporation (Anscor), for a cash consideration of $67.1 million (P3 billion), the company said.

The deal also involves General Cable Corp selling its 0.2 per cent stake in Phelps Dodge Philippines Energy Products Corporation (PDEP) to Anscor.

Anscor, which currently owns 40 per cent in PDP, will fully own the company post the deal, as it will buy out the 60 per cent share, held by its US-based partner, it said in a separate disclosure to the Manila Exchange.

Phelps Dodge was born in 1955 when Anscor forged a partnership with Phelps Dodge International Corporation (PDIC). In 2007, PDIC became part of General Cable Corporation, forming an alliance that is now the second-largest wire and cable group in the world.

Phelps Dodge, the largest manufacturer of building wires, power cables, communication cables, special cables and other aluminium products in the Philippines, is also a global leader in this space. The company has a worldwide network that develops, designs, manufactures, markets and distributes copper and aluminium cables and wires for the retail, commercial, institutional, energy, industrial, specialty and communication markets.

General Cable’s exit from PDP is part of the company’s strategy to divest all its manufacturing operations in Asia Pacific and Africa, in order to simplify its geographic portfolio and reduce organisation complexity.

General Cable’s chairman of the board John Welsh III said their company was focused on its restructuring program and delivering improved returns from core strategic markets.

“We are pleased with the efficient and timely execution of this meaningful transaction, which represents a significant initial step in simplifying our portfolio. Our team has effectively completed this sale while continuing to advance our divestiture plans for the remaining assets within Asia Pacific and Africa. We continue to believe these actions will enable us to optimize our asset base and sharpen our strategic focus on our core assets in North America, Latin America and Europe,” Welsh added.

“Proceeds from the sale will be used to reduce outstanding borrowings on the company’s North American and European asset based revolving credit facility,” General Cable said in a statement.

A Philippine holding company that began operations in 1930, Anscor is invested in various industries and businesses such as mining, fertilizer manufacturing, financial services sectors, including export of services and information technology.

According to the recent BCC Research report, the global cable market was valued at $172 billion in 2012 and $188.3 billion in 2013. This market is expected to reach $205 billion in 2014 and $297.4 billion in 2019, a compound annual growth rate (CAGR) of 7.7 per cent from 2014 to 2019.

The study likewise indicated that market for power cables is expected to increase from nearly $153.2 billion in 2014 to about $219.7 billion by 2019, with a CAGR of 7.5 per cent from 2014 to 2019.

Telecom cables are expected to increase from $51.8 billion in 2014 to about $77.8 billion by 2019, with a 2014-2019 CAGR of 8.5 per cent, the BCC Research report said.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.