Fitch: CEMEX Take-over Bid Positive for Trinidad Cement Ltd.

CHICAGO--()--CEMEX, S.A.B. de C.V. (CEMEX) recently announced its intention to present an offer and takeover bid to all shareholders of Trinidad Cement Limited (TCL) to acquire up to 132.6 million ordinary shares in TCL. As previously stated, Fitch believes a meaningful increase in CEMEX's current indirect 39.5% ownership of TCL would be a positive ratings trigger.

The offer would increase CEMEX's current indirect stake on TCL to up to 74.9%, if successful, and could result in an upgrade of at least one notch to TCL's 'B-' rating. The offer is conditional on CEMEX indirectly acquiring an amount of TCL shares that would allow it to consolidate TCL and is expected to close on Jan. 10, 2017.

TCL is the leading producer of cement in the Caribbean Community region, with eight operating companies in Trinidad, Barbados, Guyana, Jamaica and Anguilla. It has a dominant market position, particularly in key markets such as Trinidad and Tobago and Jamaica. As of Sept. 30, 2016 TCL had generated USD77 million of EBITDA during the latest 12 months and its total debt was USD161 million. The company's USD47 million of cash adequately cover USD29 million of short-term debt as of the third-quarter 2016.

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Fitch Ratings
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+1-312-606-2144
Fitch Ratings, Inc.
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or
Secondary Analyst
Phillip Wrenn
Associate Director
+1-312-368-2075
or
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Elizabeth Fogerty, New York, +1 212-908-0526
Email: elizabeth.fogerty@fitchratings.com

Contacts

Fitch Ratings
Primary Analyst
Gilberto Gonzalez, CFA
Associate Director
+1-312-606-2144
Fitch Ratings, Inc.
70 W. Madison Street
Chicago, IL 60602
or
Secondary Analyst
Phillip Wrenn
Associate Director
+1-312-368-2075
or
Media Relations:
Elizabeth Fogerty, New York, +1 212-908-0526
Email: elizabeth.fogerty@fitchratings.com