Cemex takeover bid for Trinidad Cement still open in Jamaica
The take-up of Cemex's bid for additional shares in Trinidad Cement Limited (TCL) has so far pushed the Mexican company's ownership to 70 per cent, but a final tally of subscriptions won't be for another week.
The offer in Jamaica remains open until February 7.
Cemex says at the last count on Wednesday, 114.3 million TCL shares were tendered. 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 74.9 per cent. The offer was priced at TT$5.07 per share, or US$0.76, valuing TCL at TT$1.9 billion.
Cemex is still aiming for the maximum shares initially targeted. However, based on the preliminary count of shares on Tuesday, on the closing day of the offer in Trinidad and Barbados, the take-up pushed its stake above 67 per cent and was enough for it to declare the offer "successful".
In recognition of the new reality, Trinidad Cement itself released a statement to shareholders reporting on the offer, which it headlined 'Change in majority Ownership of Trinidad Cement Limited'.
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.
A version of this story first appeared online at www.jamaica-gleaner.com/business