Aug 2013 Financial News

Republic warns TCL over threats to officers

Aug 09, 2013

Republic Bank warned Trinidad Cement Ltd Wednesday it was in the process of taking advice with respect to the actions of the cement company’s management, including, but not limited to, “its continued media releases and its threats against the bank and its officers.” The bank’s statement is the latest sortie in a row between the two companies which includes a shareholders’ proposal to nominate five men to serve on the TCL board, a last-minute injunction by the shareholders to stop the cement company’s annual meeting last month and allegations by TCL that Republic Bank orchestrated the shareholders’ proposal. On Monday, TCL disclosed it had lodged insider-trading and price-rigging complaints relating to a Republic Bank executive and a TCL shareholder with the T&T Securities and Exchange Commission and the Central Bank.

Republic Bank on Wednesday described TCL’s Monday news release as being similar to others issued by the cement company in that it “failed to provide a complete and accurate factual report.”
The bank noted there was a matter before the High Court and Court of Appeal between certain TCL shareholders and the cement producer. The bank stated it was not a party to that litigation and as a matter of principle, it did not comment on matters that were before the courts and in particular those in which it was not involved. “Republic Bank is in the process of taking advice with respect to the actions of TCL’s management, including, but not limited to, its continued media releases and its threats against the bank and its officers,” it added. The bank said dependent on the advice it received, it would give mature consideration to what action it would take. “In the interim,” according to the bank, it “cautions TCL against publications of inaccurate, incomplete, self-serving media releases.”

Republic Bank is one of TCL’s largest creditors. Republic Finance and Merchant Bank extended a US$20 million loan and a US$50 million equivalent bond issue in TT dollars to TCL in July 2005.
That financing was part of a US$105 million package arranged and structured by the International Finance Corporation (IFC) that helped TCL expand and modernise its Jamaica subsidiary, Carib Cement. The IFC, an arm of the World Bank Group, provided US$35 million in senior and subordinated loans. Republic Bank is also TCL’s second largest shareholder with 28.3 million shares which gives it an 11.34 per cent stake in the cement company. Republic Bank managing director, David Dulal-Whiteway, served as a TCL director between June 1998 and October 2005 and was the chairman of the cement company between May 2003 and October 2005.


Source:
Trinidad Guardian
Friday August 9, 2013

http://guardian.co.tt/business/2013-08-09/republic-warns-tcl-over-threats-officers