Mexican company takes over Trinidad Cement Limited

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The Mexico-based cement giant, CEMEX, says it has acquired enough shares to take control of the Trinidad-based Trinidad Cement Limited (TCL) after shareholders accepted its latest offer made earlier this month.

The company said it will pay in excess of US$79 million to take control of the company, which has operations in Trinidad and Tobago, Jamaica and Barbados.

CEMEX Chief Executive Officer Fernando A Gonzalez said, “We are satisfied with and grateful for the trust placed in us by TCL stockholders.

“We see a positive outlook for the business environment and we are committed to being a reliable cement supplier in Trinidad and Tobago, Jamaica, Barbados, and the whole Caricom (Caribbean Community) region.”

In a statement posted on its website, CEMEX said that its indirect subsidiary Sierra Trading had disclosed that all terms and conditions of the amended offer made on January 9, this year, to acquire up to 132,616,942 ordinary shares for US$0.76 in cash per share in TCL, a company publicly listed in Trinidad and Tobago, Jamaica and Barbados, had been complied with or waived and the “offer has accordingly been declared unconditional”.

It said based on the latest information, TCL shareholders have deposited approximately 104.5 million, subject to validation, TCL shares in response to the offer which, together with Sierra’s existing shareholding in TCL, represents approximately 67.39 per cent of the outstanding TCL shares.

“Sierra intends to take up all TCL shares deposited pursuant to the offer up to the maximum number of the offered shares. If the number of TCL shares deposited by TCL shareholders exceeds the maximum number of offered shares, the TCL shares will be taken up by Sierra on a prorated basis according to the number of TCL shares deposited by each TCL shareholder,” CEMEX said.

It said Sierra expects that TCL shares deposited by shareholders in Trinidad and Tobago will be taken up by January 31st, 2017, and that the total number of tendered shares will be announced by Sierra upon the close of the offer period in all jurisdictions.

CEMEX said that the offer remains open until February 7 for TCL shareholders in Jamaica in accordance with the regulations in that country.

“As of today (yesterday), the total consideration to be paid by Sierra for the TCL shares it will take up pursuant to the offer is approximately US$79,420,000.00. Such consideration could increase once the final tally of TCL shares deposited is determined and the offer period closes in Jamaica,” CEMEX said.

The Mexican cement company said that payment for the purchase of the shares in Trinidad and Tobago and Jamaica will be made on or before Friday, February 3, 2017 at the rate of TT$5.07 or US$0.76, depending on the currency option selected by TCL shareholders, while payment in Barbados will be on or before February 23, 2017 based on the Barbados currency equivalent of TT$5.07.

“TCL is to continue operating as usual. Additionally, TCL will be maintained as a publicly listed company on the Trinidad and Tobago Stock Exchange with the benefit of a strong local shareholding together with the enhanced benefit of proven management and operational expertise from CEMEX.”

CEMEX has operations extending throughout the world, with production facilities spanning 50 countries in North America, the Caribbean, South America, Europe, Asia, and Africa.

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