Cemex shares jump on plan to list unit in Colombia

Cemex plans to sell minority stake in Cemex Latam

Unit to be listed in Colombia includes assets in Central and South America

Proceeds to be used to pay down debt

Shares of cement and building materials company Cemex SAB (CX, CEMEX.MX) opened sharply higher wednesday after the company unveiled plans to sell a minority stake in a Latin America unit to be listed on the Colombian stock exchange.

Cemex CPO shares traded on the Mexican stock exchange were up 6.9% at 10.97 pesos ($0.83) around 10:05 a.m. EDT. (1405 GMT).

Cemex said tuesday that it filed for authorization to list Cemex Latam Holdings SA in Colombia and offer a minority stake in the unit. Cemex Latam is expected to include all of Cemex's assets in Central and South America, which excludes Mexico.

The planned listing is part of Cemex's efforts to sell assets to pay down its heavy debt load.

"Naturally depending on pricing when and if this happens, we think this continues to support the positive news flow momentum the company has been facing and are comfortable maintaining our buy rating," UBS said in a note to investors.

"Through time the South and Central American countries have gained importance in Cemex's portfolio (mainly due to very hurt operations in Europe and the U.S.)," the investment bank said.

Cemex shares had already risen tuesday when the Monterrey company said creditors representing 90% of its debt under a 2.009 financing agreement have accepted a proposed exchange that will move $7.2 billion in February 2.014 payments to February 2.017.

Creditors representing another 1.5% have indicated their intention to accept, and Cemex extended the deadline for accepting to exchange to Sept. 7.