ANDRE WORRELL
The takeover bid for Trinidad Cement Limited (TCL) by Cemex expires today and the Mexican cement giant is already claiming it has surpassed one of the conditions of its offer and has obtained a 50.01 per cent stake in the Claxton Bay company.
In a notice to TCL shareholders published over the weekend, Cemex announced that the number of acceptances by TCL shareholders for the amended offer exceeded the 50.01 per cent threshold.
TCL directors advised shareholders to reject the amended offer from Cemex because it was "not fair, from a financial point of view" based on a fairness opinion done by Ernst and Young Services Limited (EYSL)
Since the takeover bid was first announced in December, TCL's share price has risen more than 60 per cent and was trading at $5.50 on the T&T Stock Exchange yesterday..
Cemex is seeking to acquire up to 74.9 per cent of TCL and consolidate the company as part of its operations. The Mexican company first announced its take over bid last December 5 and offered shareholders $4.50 per share and a premium of 33.1 per cent over the December 1 closing price.
After that offer was rejected by the TCL board on December 23, Cemex made an amended offer on January 9, increasing its offer price from $4.50 to $5.07 and offering shareholders in Jamaica and T&T the option to be paid in US dollars.
Through its indirect subsidiary Sierra Trading, Cemex controls a 39.5 per cent stake in TCL. In 2015, Cemex participated in a rights issue at a price of $2.90 per share and increased its shareholding in TCL from 20 per cent to 39.5 per cent which resulted in a recapitalisation of the company.