The board of directors of Trinidad Cement Ltd (TCL) has written to shareholders advising them to reject Cemex's TTD597m (US$89m) offer for a controlling interest in the company, the Jamaica Observer reports.
“The company (TCL) has experienced a turnaround after multiple past efforts to do so. The evidence of the turnaround is supported by the company’s return to sustainable profitability in 2015 and continuing to produce positive net income throughout 2016,” said the directors in their letter.
“The Board has carefully considered the offer and has examined the proposed business strategy therein and has concluded that the consideration to be received by shareholders under the offer is not fair, from a financial point of view, to the shareholders,” they added.
Cemex already hold 39.5 per cent of TCL’s shares through the former’s Sierra subsidiary. Their offer, which prices TCL at TTD4.50 per share, expires on 10 January 2017.
