Dec 2016 Financial News

Mexico cement giant to take over Trinidad Cement

Dec 05, 2016

PORT OF SPAIN, Trinidad (CMC) — The Mexico-based cement giant, CEMEX, Monday announced plans to take over the Trinidad-based Trinidad Cement Ltd (TCL) reviving moves that of a takeover more than a decade ago.

CEMEX, through one of its indirect subsidiaries Sierra Trading, said it is seeking to acquire 132,616,942 shares at a price of TT$4.50 (US$0.72) in cash per TCL share.

The proposed offer price represents a 33.13 per cent premium over TCL’s price of TT$3.38 (US$0.54) at the close of trading on Friday.

CEMEX currently owns 39.5 per cent of TCL, which announced at the end of October that its revenue had declined by 12.2 per cent for the first nine months of 2016.

Last year, TCL shareholders voted overwhelming to lift the 20 per cent cap on shareholding in a move critics said then opened the way for CEMEX to take control of the financially struggling company.

CEMEX, which has operations extending throughout the world, with production facilities spanning 50 countries in North America, the Caribbean, South America, Europe, Asia, and Africa, is at present the single largest shareholder at 20 per cent, and would be able to acquire shares worth up to US$45 million in the rights issue.

Former TCL chief executive officer Dr Rollin Bertrand and the powerful Oilfield Workers Trade Union (OWTU) had campaigned against the move to remove the cap.

Last year in a letter to a daily newspaper, Bertrand called on shareholders to reject the proposal to “hand control” of the cement plant to, CEMEX, regarded as one of the world’s largest building materials suppliers and cement producers.

Bertrand, who, along with other directors, was removed in 2015, said, it was now becoming clear as to why the board had been removed in August 2014.

“This had nothing to do with ‘performance’ but was really a thinly veiled plan to hand over control of TCL to CEMEX as was proposed by certain businessmen in 2002.

But soon after the cap was removed TCL chairman, Wilfred Espinet, denied there was a move by CEMEX to take over TCL.

Source:
Jamaica Observer
Monday December 5, 2016

http://www.jamaicaobserver.com/news/Mexico-cement-giant-to-take-over-Trinidad-Cement