Cemex ups the ante; offers higher share price payable in US dollars
Cemex, which through subsidiary, Sierra Trading, is seeking to acquirea larger stake in Trinidad Cement Ltd, has responded to the negativeassessment of company directors of their previous offer as inadequateand unfair, by raising the offer price by TT$0.57.
Cemex, a global materials trader, announced its intention in early
December to acquire up to 132,616,942 ordinary shares in TCL at TT$4.50
each.
Together with Sierra’s existing share ownership in TCL of
approximately 39.5 per cent, the acquisition — if successful — would
result in the company holding up to 74.9 per cent of the equity share
capital in TCL.
However, two days before Christmas, TCL’s directors issued an
advisory to shareholders recommending that the offer of TT $4.50 be
rejected, stating that they were relying on an assessment of the offer
by Ernst and Young as being unfair to shareholders.
On Wednesday January 11, Cemex upped its price by TT 57 cents per
share, also offering to pay shareholders who accept their offer — except
for those in Barbados — the option of receiving payment in US dollars.
The new offer price of TT$5.07, said Cemex in a related release on
Wednesday, now represents a 50 per cent premium on share price at the
time of the December 5 offer, and “includes the option for shareholders
in Trinidad and Tobago and Jamaica to be paid in US dollars”.
Sierra will now pay approximately TT$672 million (US$101 million), based on the revised price.
The acceptance date of January 24 remains. On Wednesday, Cemex again
noted that if successful, TCL will continue operating as usual and
remain listed.
TCL’s main operations are in Trinidad and Tobago, Jamaica and
Barbados. It is the majority shareholder of Caribbean Cement Company
Limited (CCCL), a cement producer in Jamaica.
As of September 30, 2016, TCL and its subsidiaries had EBITDA of
approximately US$77 million for the last 12 months and net debt of
approximately US$113 million, representing a net financial leverage of
approximately 1.5x.