Concrete Aggregates to sell idle assets

Construction firm Concrete Aggregates Corp. will dispose of a number of idle assets left behind by the closure and retrenchment in two of its business divisions as the company continues to struggle in the face of a prolonged slump in construction activities.

In a disclosure to the Philippine Stock Exchange, CAC corporate counsel Ma. Carmela Lajom said these assets are not necessary nor being used in the ordinary course of business and are to be disposed through public auction.

"Due to the closure of the Engineering and Construction Division of CAC by the latter part of 1999 and the recent retrenchment of the Quarry (Extraction) Department, the company is left with idle assets in the form of construction plants, heavy equipment, spare parts, loose tools and equipment and scrap," Lajom said.

Based on its valuation report, CAC is expected to earn at least P38 million from the sale of these assets. The determination of the valuation of the idle assets was made by a team of professional consultants engaged by the company and was validated by a professional appraiser whereas the same were counter-checked by Henry Butcher and Co. (Phils) Inc. considering the age, nature of equipment, acquisition cost, depreciation and maintenance costs.

Henry Butcher and Co., an internationally licensed industrial auctioneer and valuer, has started the frist phase of the asset sale last May 31 to June 2, 2001 and will likewise handle the sale of the remaining assets. – Conrado Diaz Jr.