Cemex, S.A.B. de C.V. announced that one of its indirect subsidiaries, Sierra Trading, will present an offer and takeover bid for Trinidad Cement Ltd. (TCL), aiming to raise its stake in the Caribbean company from 39.5 percent to 74.9 percent for $89 million.
The offer price of TT$4.50 ($0.67) per TCL share is 33.1 percent above the company’s Dec. 1 closing price on the Trinidad and Tobago Stock Exchange. Among other conditions, the offer will be conditional on Sierra acquiring at least an amount of TCL shares that would allow Cemex to consolidate TCL. Unless extended, the offer period is expected to close on Jan. 10, 2017.
If the takeover is successful, Cemex said TCL will continue to operate as usual, and will be maintained as a publicly listed company on the Trinidad and Tobago Stock Exchange under Cemex management.
“This offer represents a clear sign of our commitment to TCL and the region,” said Fernando A. Gonzalez, CEO of Cemex. “In addition, although we believe that our offer is attractive given the premium to the current share price, as part of this commitment, it is also important to us that TCL remains a listed company, so that local investors can continue to benefit from the development of TCL in the future.”
TCL’s main operations are in Trinidad and Tobago, Jamaica and Barbados. It is the majority shareholder of Caribbean Cement Company Ltd., a main cement producer in Jamaica. As of Sept. 30, 2016, TCL and its subsidiaries had EBITDA of approximately $77 million for the last 12 months, net debt of approximately $113 million, representing a net financial leverage of approximately 1.5x.