By Curtis Rampersad, Trinidad Express Newspaper
Thursday, November 18th 2004
Two years after a Mexican cement giant narrowly lost out in its bid to take over local producer Trinidad Cement Ltd, a foreign buyer has snapped up a huge eight per cent stake in the Claxton Bay firm.
A Switzerland-based investment company bought 21.14 million TCL shares in a stock market transaction worth more than $153 million during trading on the Exchange in Port of Spain yesterday. Market sources confirmed the shares had been sold by three powerful groups-Neal and Massy Holdings, Associated Brands Ltd and Guardian Holdings/RBTT Financial.
The shares were traded at $7.25.
Following the sale crossing the floor of the Exchange, there were immediate concerns that Mexican cement producer Cemex might be gearing up to acquire TCL once again.
But a source said to be close to the buyers said that Cemex was not involved.
Another industry source speculated that the Swiss firm had bought the TCL stock because it was interested in buying into strong companies in emerging markets.
In July, 2002, Cemex was narrowly blocked in its bid to take over TCL when 1,500 minority local shareholders kept Cemex at bay by voting against the removal of a restrictive clause in TCL‘s Articles of Continuance.
Cemex, which owns 20 per cent of TCL, had requested a special shareholders meeting to remove a restriction which prevented it from acquiring more TCL stock.
Lok Jack, who sits as chairman of Associated Brand (his own company) as well as chairman of Guardian Holdings, was a former TCL director who was removed from the Board a couple of years ago.
He supported the idea of a foreign company buying into a local firm since local companies were allowed to invest outside Trinidad and Tobago.
Lok Jack is said to be out of the country until Saturday and could not be immediately reached for comment yesterday.
The TCL transaction dominated activity on the market, helping the market to post the largest volume of shares traded for the year.
By Curtis Rampersad, Trinidad Express Newspaper
Thursday, November 18th 2004