Cemex has claimed victory in its takeover bid for Trinidad Cement after claiming a 67.39% stake in the company. The Mexican company’s successful bid comes despite opposition from Trinidad Cement’s board of directors.
According to Cemex, Trinidad Cement shareholders have so far deposited 104.5 million shares. When added to Cemex’s existing stake, the additional shares bring its holding to 67.39%. Cemex said it intended to take up all of the share so far deposited up to a maximum of 132.6 million shares.
The news comes Cemex received a Foreign Investment License from the Trinidad and Tobago Ministry of Finance, meaning that all terms and conditions of the offer had been met and making the offer unconditional.
“We are satisfied with and grateful for the trust placed in us by Trinidad Cement shareholders,” said Fernando Gonzalez, CEO of Cemex. “We see a positive outlook for the business environment and we are committed to being a reliable cement supplier in Trinidad and Tobago, Jamaica, Barbados and the whole Caricom region.”
According to Cemex, the total cost of the takeover bid will be about US$79.4 million, although that could rise when the final talley of Trinidad Cement shares is determined and the offer period closes in Jamaica, where it remains open until 7 February.
Cemex holds its stake in Trinidad Cement via its Indirect subsidiary, Sierra Trading. As of 30 September, Trinidad Cement has earnings of US$77 million over the previous 12 months.
The board of directors of Trinidad Cement had twice rejected the offer from Cemex, despite the Mexican company raising its offer in January, arguing that even the higher offer was “not fair from a financial point of view.”
Read the article online at: https://www.worldcement.com/the-americas/25012017/cemex-claims-success-in-trinidad-cement-takeover/