Following yesterday’s news that six of nine members of the Trinidad Cement Limited board were replaced, the company has suspended CEO Rollin Bertrand while a performance review is undertaken over the next 30 days. Bertrand is replaced by Alejandro Alberto Ramirez, a director on the board since October 2012 and also country director of Cemex Puerto Rico. Cemex has a 20% stake in TCL.
A financial and operational assessment of the company is to be completed within 60 days and will give the new board some idea of where to take TCL next. The next board meeting is likely to take place in 90 days.
The fact that a Cemex representative has taken over as acting CEO, coupled with the addition of two Cemex representatives to the board on Tuesday, has led to speculation of a potential Cemex takeover. Cemex has held on to its share in TCL through the last several difficult years of restructuring and debt management, despite TCL’s poor performance. In an article entitled ‘Will Cemex end up owning TCL?’, the Trinidad & Tobago Guardian questions whether shareholders ‘want to sell their shares to Mexican cement giant Cemex for the highest sum in the short term?’, adding: ‘are they prepared for the risk that Cemex will then close all of TCL’s cement production capability in Trinidad, Barbados and Jamaica and supply the Caribbean from an existing, lower cost Cemex facility?’
Whatever Cemex plans for Trinidad Cement Limited, the next 60 days are likely to be important ones for the indebted cement company.
Edited from various sources by Katherine Guenioui
Read the article online at: https://www.worldcement.com/the-americas/21082014/cemex-representative-new-acting-ceo-of-trinidad-cement-limited-335/