Trinidad Cement’s Board of directors has recommended shareholders reject a takeover offer from Sierra Trading, a subsidiary of CEMEX, arguing that the bid fails to reflect the company’s ‘full commercial value’. CEMEX is already the largest shareholder in the company, holding a 39.5 per cent of the total equity.
In a circular to shareholders, the Board concluded that the ‘consideration to be received by shareholders under the offer is not fair, from a financial point of view, to shareholders.’
Sierra Trading has offered TT$4.50 per share for the company; the Board of directors did not say what a fair price would be.