Trinidad Cement Limited (TCL), who was recently approved to remove a 20 percent restriction on shareholding, has signed a subscription agreement with Sierra Trading, an affiliate of Cemex, reported the Trinidad Guardian. Under the agreement, Sierra will participate in TCL’s upcoming rights issue and has committed to additional capital via an agreement to underwrite the raising of capital up to a maximum of $45 million. This will ensure that TCL meets a capitalization target of at least $50 million.
TCL has agreed to grant an exclusive right to Sierra to subscribe and purchase any shares in the rights issue which are not taken up by shareholders. However, the amount should not cause Sierra’s shareholding in TCL to exceed 40 percent of the local cement company’s outstanding shares. If after the rights issue Sierra has not achieved at least 35 percent shareholding in TCL, a private placement of shares in the company will be issued.
Sierra currently holds 20 percent of TCL’s share capital.
TCL is embarking on a comprehensive restructuring plan aimed at preserving its ongoing operations of the company and ensure its overall long-term viability. The plan is being spearheaded by a new TCL board installed late last year, headed by businessman Wilfred Espinet and including retired public servant Alison Lewis, Jamaican business executive Chris Dehring, attorney Glenn Hamel-Smith, Unit Trust Corp. executive Nigel Edwards, and Cemex executives Carlos Palero and Francisco Aguilera.