CEMEX today announced that its indirect subsidiary, Sierra Trading (Sierra) is amending the offer that was presented on December 5, 2016 to shareholders of Trinidad Cement (TCL), to acquire up to 132,616,942 ordinary shares in TCL.
If acquired together with Sierra’s existing share ownership in TCL of approximately 39.5 percent, would, result in Sierra holding up to 74.9 percent of the equity share capital in TCL.
Sierra will increase the offer to TT$5.07 in cash for each TCL’s share from $4.50 previously, a price that Ernst & Young said was inadequate and rejected by the directors. It is unclear if the revised offer will be found to be palatable to the directors and shareholders. The prospects for the company appear to be such that a much higher price may well be warranted.
Among other conditions, the Offer, as amended by the Amended Offer, will be conditional on Sierra acquiring at least an amount of TCL shares that would allow CEMEX, for financial reporting purposes, to consolidate TCL. Unless extended, the Offer period, as amended by the Amended Offer, is expected to close on January 24, 2017 at 3.00 p.m. Trinidad and Tobago time. Sierra does not currently expect to extend the Offer period after January 24, 2017. All other terms and conditions of the Offer not modified by the Amended Offer remain unchanged.
If the Offer, as amended by the Amended Offer, is successful, TCL will 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.
TCL’s main operations are in Trinidad and Tobago, Jamaica and Barbados. TCL is the majority shareholder of Caribbean Cement Company Limited (“CCCL”), a main cement producer in Jamaica.
As of September 30, 2016, TCL and its subsidiaries had EBITDA of approximately US$77 million for the last twelve months, net debt of approximately US$113 million, representing a net financial leverage of approximately 1.5x the Cemex release stated.
CEMEX is a global building materials company that provides high-quality products and reliable services to customers and communities in more than 50 countries. CEMEX has a rich history of improving the well-being of those it serves through innovative building solutions, efficiency advancements, and efforts to promote a sustainable future.
Cemex hikes offer for TCl shares
January 10, 2017 by