Majority shareholders of the Caribbean Cement Company Limited have indicated their support for a future payment of dividends in 2022, once approved by the shareholding of the company in the next annual general meeting expected for mid-2022.
This disclosure was made during the company’s 72nd Annual General Meeting, which was held virtually on December 7.
“We have received correspondences from Trinidad Cement Limited, TCL Nevis Ltd. and CEMEX Operaciones Mexico, SAB de CV. in which they have asked to place on record at the Annual General Meeting their support for the development of a dividend policy that would assist the company in having a framework for the administration, declaration and payment of dividends to its shareholders,” said Chairman of the company Parris Lyew-Ayee, during the meeting.
It is expected that the dividend policy will be completed and approved in the first quarter of 2022.
The Board should be in a position at that time to evaluate the company’s 2021 full-year performance to determine if it meets the criteria to qualify for a dividend payout based on the expected dividend policy.
Once the criteria are met, the Board should be able to submit to the shareholders for their approval, the declaration of a dividend at the next AGM which is expected to be convened mid-year.
Proposed agreements between CCCL and CEMEX
During the AGM, a motion authorizing CCCL to enter into an agreement with CEMEX, which establishes the general framework for regional and corporate services provided by CEMEX to CCCL, and the payment of royalties for the use of trademarks, names and intellectual property owned by CEMEX and licensed to CCCL, was passed by a 91 per cent majority.
“We believe that CEMEX has brought significant value to our organization since the acquisition of the majority shareholding of CCCL in 2017. During these years, CCCL has implemented several important initiatives which has made the company more efficient operating under the highest international standards for our industry. Our intention is to continue to benefit from these high standards and therefore, we believe it is in the best interest of CCCL to engage in a Master Service and Intellectual Property Agreement with CEMEX to formalize these arrangements going forward,” said Managing Director, Yago Castro.
“Once a final agreement is reached on the specific terms and conditions that will cover the corporate services and intellectual property of CEMEX to be used by CCCL in 2022, CCCL will inform all shareholders and the general public, in accordance with applicable law and regulations,” Mr. Castro continued.
Caribbean Cement Company Limited has indicated that it will finalise discussions with CEMEX, the ultimate parent company, on the fees to be paid for corporate services and intellectual property in 2022