Full TC shareholders’ acceptance of the new offer of TT$5.07 in cash per TC share would result in a cash payment by Sierra of around TT$672 million (US$101 million). The Revised Offer Price represents a premium of 50% over the 1 December 2016 closing price of TC’s shares on the Trinidad and Tobago Stock Exchange. Except for shareholders of TC in Barbados, shareholders of TC will have the option to be paid for their TC shares in TT$ or US$.
If successful in its shares offer, which is expected to close on 24 January 2017, Sierra would hold up to 74.9% of the equity share capital in TC. A Cemex statement said TC would continue its operation as before while being maintained as a publicly listed company on the Trinidad and Tobago Stock Exchange. The statement added that TC would reap the benefit of a strong local shareholding together with the enhanced benefit of being able to draw on proven Cemex management and operational expertise.
TC’s main operations are in Trinidad and Tobago, Jamaica and Barbados. The firm is the majority shareholder of Caribbean Cement Company (CCCL), a main cement producer in Jamaica. As of 30 September 2016, TC and its subsidiaries had EBITDA of approximately US$77 million for the last 12 months, net debt of approximately US$113 million, representing a net financial leverage of approximately 1.5x. If the shareholder offer is successful TC would, for financial reporting purposes, be consolidated by Cemex.
