TCL raises US$57m from rights issue, Cemex ups stake to 39.5%
Trinidad Cement Limited (TCL) said more than 6,300 shareholders chose not to participate in the rights offer that closed March 31, but that all shares were fully allotted under the side agreement with a Cemex.
Of the more than 124.88 million shares on offer, TCL said just under 51.82 million were subscribed under the allotments.
The company said in a market filing that “118 shareholders took up their accepted the provisional allotment in whole; nine shareholders accepted the provisional allotment in part; and 6,354 shareholders allowed entitlement to the allotment to lapse”.
Under the ‘backstop’ agreement struck with shareholder Sierra Trading Limited – a subsidiary of Cemex – in February to underwite a portion of the offer, the Mexican company purchased the other 73.06 million shares.
“Accordingly, the rights issue was fully subscribed,” said TCL.
Sierra Trading has increased its shareholding from 20 per cent to 39.5 per cent under the rights issue. Sierra paid US$44.85 million for the additional stake.
The offer raised US$57.13 million in total, giving the cement-maker more than enough to satisfy a condition of its creditors that TCL raise fresh equity capital of at least US$50 million as a requirement of a new debt restructuring programme, the company said.