Cemex takeover bid for Trinidad Cement successful
Cemex’s bid for Trinidad Cement Limited was taken up by shareholders in Trinidad & Tobago, giving the Mexican company at least 67.39 per cent control of the cement maker up to the closing of the offer on Tuesday.
The offer in Jamaica remains open until February 7 and did not factor into Tuesday’s tally.
Cemex, through subsidiary Sierra Trading, put in a bid for 132.6 million additional shares, with the intent of boosting its current 39.5 per cent stake in TCL to a maximum 74.9 per cent. The offer was priced at TT$5.07 per share, or US$0.76 per share, valuing TCL at TT$1.9 billion.
Cemex said it counted 104.5 million shares tendered up to Tuesday — the count is preliminary and subject to verification — and would be taking up other shares tendered to the maximum targeted. However, the take up so far is enough to give Cemex majority control of TCL and was also enough for the Mexican company to declare the offer “successful”.
Directors of TCL twice rejected the offer prices put on the table by Sierra — the initial offer on December 5 was TT$4.50 per share — saying they undervalued the company. Days before the offer closed, the directors indicated that a fairer price would be TT$5.89, which would value TCL at TT$2.2 billion.
The takeover bid was made in three markets. Payments for the shares will be made on February 3 in Trinidad, February 21 in Jamaica and February 23 in Barbados.