Sun | Oct 21, 2018

Cemex falls short in TCL takeover

Published:Friday | February 17, 2017 | 12:00 AM
Caribbean Cement Company's Rockfort plant in Kingston is now majority owned by Cemex of Mexico under its takeover of Trinidad Cement Limited.

Cemex SAB de CV now owns 69.83 per cent of Trinidad Cement Limited, through Sierra Trading, following the closing of its takeover offer in three regional stock markets.

Cemex, however, fell short of its goal, which was to double its stake in the cement maker to 74.9 per cent.

The Mexican company said in a market filing it will pay out the equivalent of US$83.6 million for shares tendered under the takeover offer, which was priced at TT$5.07 per share or US$0.76 per share.

The TCL stock is currently trading around TT$4.16 in its home market of Trinidad & Tobago and at $63 on the Jamaican stock exchange.

The payments to Jamaican shareholders of TCL, who offered up 4.1 million units in aggregate, will be made by February 21. Trinidadians tendered 109.4 million shares and Barbadian shareholders, 111,513 shares.

Sierra previously held 39.5 per cent of TCL. The takeover also gives the Mexican company majority ownership of the Caribbean Cement Company operation at Rockfort in Kingston.