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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
--------------------------
SCHEDULE TO
(RULE 14D-100)
TENDER OFFER STATEMENT UNDER SECTION 14(D)(1)
OR SECTION 13(E)(1) OF THE SECURITIES EXCHANGE ACT OF
1934.
PUERTO RICAN CEMENT COMPANY, INC.
(Name of Subject Company (issuer))
TRICEM ACQUISITION, CORP.
an indirect wholly owned subsidiary of
CEMEX, S.A. de C.V.
(Names of Filing Persons (offerors))
--------------------------
COMMON STOCK, PAR VALUE $1.00 PER SHARE
(Title of Class of Securities)
--------------------------
745075-10-1
(CUSIP Number of Class of Securities)
Ramiro Villarreal
CEMEX, S.A. de C.V.
Ave. Constitucion 444 Pte.
Monterrey, Nuevo Leon, Mexico 64000
Telephone: (011-528) 328-3000
(Name, address and telephone number of person
authorized to receive notices and communications
on behalf of filing persons)
Copies to:
Randall H. Doud, Esq.
Skadden, Arps, Slate, Meagher & Flom LLP
Four Times Square
New York, N.Y. 10036
Telephone: 212-735-3000
[X] Check the box if the filing relates solely to preliminary
communications made before the commencement of a tender offer.
Check the appropriate boxes below to designate any transactions to
which the statement relates: [X] third-party tender offer subject to
Rule 14d-1. [_] issuer tender offer subject to Rule 13e-4.
[_] going-private transaction subject to Rule 13e-3.
[_] amendment to Schedule 13D under Rule 13d-2.
Check the following box if the filing is a final amendment reporting
the results of the tender offer: [_]
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ITEM 12. Exhibits.
(a)(5)(A) - Joint Press Release issued by Cemex, S.A. de C.V. and Puerto Rican
Cement Company, Inc. on June 12, 2002 (English version)
(a)(5)(B) - Joint Press Release issued by Cemex, S.A. de C.V. and Puerto Rican
Cement Company, Inc. on June 12, 2002 (Spanish version)
EXHIBIT INDEX
Exhibit No. Exhibit Name
(a)(5)(A) Joint Press Release issued by Cemex, S.A. de C.V. and
Puerto Rican Cement Company, Inc. (English version)
(a)(5)(B) Joint Press Release issued by Cemex, S.A. de C.V. and
Puerto Rican Cement Company, Inc. (Spanish version)
EXHIBIT (a)(5)(A)
[CEMEX, S.A. de C.V. LOGO] [PUERTO RICAN CEMENT COMPANY, INC. LOGO]
CEMEX AND PUERTO RICAN CEMENT COMPANY, INC. ANNOUNCE CASH OFFER TO ACQUIRE
ALL OUTSTANDING SHARES OF PUERTO RICAN CEMENT COMPANY, INC.
Monterrey, Mexico, and San Juan, Puerto Rico, June 12, 2002 - CEMEX S.A. de
C.V. (NYSE: CX) ("CEMEX") and Puerto Rican Cement Company, Inc. (NYSE: PRN)
("PRCC") announced today that they have entered into a definitive agreement
for CEMEX to acquire PRCC. Under the terms of the agreement, Tricem
Acquisition, Corp., a subsidiary of CEMEX, will launch a cash tender offer
on or before July 2, 2002, for all of the outstanding shares of PRCC for
US$35 per share net to the selling holders in cash.
The transaction is valued at US$250 million including the assumption of
approximately US$70 million of PRCC's net debt (interest bearing debt less
cash and investments) according to PRCC's filings with the Securities and
Exchange Commission. CEMEX estimates the value of the transaction to be
approximately US$134 per ton of cement production capacity, after adjusting
for the value of PRCC's ready-mix business.
The transaction, which was unanimously approved by all of the directors
present at meetings of the boards of both PRCC and Tricem Acquisition,
Corp., is subject to tenders in the offer of at least 51% of the
outstanding shares of PRCC, regulatory approvals, and other customary
closing conditions. The transaction is expected to close during the third
quarter of 2002. Any remaining outstanding PRCC shares after successful
completion of the tender offer, other than shares held by CEMEX or its
subsidiaries, will in a subsequent second-step merger be converted into the
right to receive US$35 in cash per share.
Although bank debt is expected to be used to fund this acquisition, CEMEX's
projected free cash flow for the third quarter of 2002 is expected to
exceed the value of the assets being acquired; therefore, it is not
anticipated that this acquisition will result in a net debt increase during
the third quarter of 2002.
PRCC's annual cement and ready mix concrete production capacity is 1.4
million metric tons and 1.15 million cubic meters, respectively. During the
year ended December 31, 2001, PRCC sold approximately one million metric
tons of gray cement to customers in Puerto Rico.
Lorenzo H. Zambrano, Chairman and CEO of CEMEX, said: "The PRCC acquisition
enhances our position in the Caribbean, by investing in Puerto Rico's
strategic geographic location, solid construction industry and economy. We
believe that by bringing PRCC into the CEMEX system we will be able to
realize significant operating improvements in the core operations of PRCC,
building on CEMEX's global capabilities in cement and ready-mix. We expect
these operating improvements to have a significant positive contribution to
the cash flows of PRCC in 2003 and beyond. We also expect the transaction
to be immediately accretive to CEMEX's cash earnings."
Miguel Nazario, Chairman and CEO of PRCC, stated: "Over the past few
decades we have built a very successful company with a good position in the
Puerto Rican market. Over these years, we have been able to profitably grow
our business and create value for our shareholders. The proposed
transaction will benefit PRCC's and CEMEX's stockholders, customers, and
employees."
The directors of PRCC have agreed to recommend to their shareholders that
they accept the offer. Several entities controlled by members of the Ferre
family with holdings totaling approximately 29% of the outstanding shares
of PRCC have entered into agreements to tender their shares into the offer
and otherwise support the transaction. Goldman, Sachs & Co. is acting as
financial advisor to CEMEX. UBS Warburg is acting as financial advisor and
is providing a fairness opinion regarding the transaction to PRCC. Skadden,
Arps, Slate, Meagher & Flom LLP and LeBoeuf, Lamb, Greene & MacRae LLP are
acting as legal counsel for CEMEX and PRCC, respectively.
Puerto Rican Cement Company, Inc. was organized under the laws of the
Commonwealth of Puerto Rico in 1938. The company is engaged in the
production and sale of cement, ready mix concrete and lime; the company is
also engaged in the packaging, financing, transportation, manufacturing of
aggregates and realty operations businesses. For more information, visit
www.prcement.com.
CEMEX is a leading global producer and marketer of cement and ready-mix
products, with operations concentrated in the world's most dynamic cement
markets across four continents. CEMEX combines a deep knowledge of the
local markets with its global network and information technology systems to
provide world-class products and services to its customers, from individual
homebuilders to large industrial contractors. For more information, visit
www.cemex.com.
Contact Information
At CEMEX: At PRCC:
Media Relations Media Relations
Daniel Perez Whitaker Ivan Baez
(52-81) 8152-2747 (787) 783-3000
daniel_pw@cemex.com baez@prcement.com
Investor Relations Investor Relations
Abraham Rodriguez Jose O. Torres
(52-81) 8328-3631 (787) 783-3000 ext. 3212
arodriguez@cemex.com jot@prcement.com
Analyst Relations
Jose Antonio Gonzalez
(212) 317-6017
josegonzalez@cemex.com
This press release contains "forward-looking statements" within the meaning
of Section 27A of the Securities Act of 1933, as amended, particularly
those statements regarding the effects of the transaction, and those
preceded by, followed by or that otherwise include the words "believe,"
"expect," "anticipate," "intend," "estimate," or similar expressions.
Forward-looking statements relating to expectations about future results or
events are based upon information available to CEMEX and PRCC as of the
date of this press release, and neither company assumes any obligation to
update any of these statements. The forward-looking statements are not
guarantees of the future performance of CEMEX or PRCC, and actual results
may vary materially from the results and expectations discussed. For
instance, while CEMEX and PRCC have entered into a definitive agreement,
there is no assurance that the parties will complete the transaction. In
the event the companies do not receive necessary government approvals or
stockholder tenders or otherwise fail to satisfy conditions to closing, the
transaction may be terminated. Additional risks and uncertainties related
to the transaction include, but are not limited to, conditions in the
markets relevant to the proposed transaction, and the successful
integration of PRCC into CEMEX's operations.
This press release is neither an offer to purchase nor a solicitation of an
offer to sell securities. The tender offer will be made only through an
offer to purchase, letter of transmittal and related tender documents. At
the time the offer is commenced, CEMEX will file a tender offer statement
and related documents with the Securities and Exchange Commission ("SEC")
and PRCC will file with the SEC a solicitation/recommendation statement
with respect to the offer, and such documents will be sent to PRCC
stockholders. Investors and stockholders are strongly advised to read both
the tender offer statement and the solicitation/recommendation statement
regarding the tender offer referred to in this press release because they
will contain important information that should be read carefully before any
decision is made with respect to the offer. Investors and stockholders may
obtain a free copy of these statements (when available) and other documents
filed by both CEMEX and PRCC at the SEC's website, http://www.sec.gov. In
addition, the tender offer statement and related materials may be obtained
free by directing such request at CEMEX at (52-81) 8328-3631. The
solicitation/recommendation statement and such other documents may be
obtained free by directing such requests to PRCC at (787) 783-3000
extension 3212.
EXHIBIT (a)(5)(B)
[CEMEX, S.A. de C.V. LOGO] [PUERTO RICAN CEMENT COMPANY, INC. LOGO]
CEMEX Y PUERTO RICAN CEMENT COMPANY, INC. ANUNCIAN OFERTA EN EFECTIVO PARA
ADQUIRIR TODAS LAS ACCIONES EN CIRCULACION DE PUERTO RICAN CEMENT, INC.
Monterrey, Mexico y San Juan, Puerto Rico, 12 de Junio de 2002 - CEMEX,
S.A. de C.V. (BMV: CEMEXCPO) ("CEMEX) y Puerto Rican Cement Company, Inc.
(NYSE: PRN) ("PRCC") anunciaron hoy que han alcanzado un acuerdo definitivo
para que CEMEX adquiera a PRCC. Bajo los terminos de la transaccion, Tricem
Acquisition, Corp., una subsidiaria de CEMEX, lanzara el 2 de julio de 2002
o antes, una oferta de compra en efectivo por todas las acciones en
circulacion de PRCC a un precio neto de 35 dolares en efectivo por accion.
La transaccion tiene un valor total de 250 millones de dolares, incluyendo
la absorcion por parte de CEMEX de aproximadamente 70 millones de dolares
de deuda neta (deuda con costo financiero menos efectivo e inversiones
temporales) de PRCC, de acuerdo con informacion enviada por PRCC a la
Comision de Valores y Mercados (SEC) de Estados Unidos. CEMEX estima que el
valor de la transaccion es de alrededor de 134 dolares por tonelada de
capacidad de produccion de cemento, despues de ajustes por el valor del
negocio de concreto premezclado de PRCC.
La transaccion, que fue aprobada por unanimidad por los consejeros
presentes en las reuniones de los consejos de PRCC y de Tricem Acquisition,
Corp., esta sujeta a que se presenten posturas de venta de por lo menos el
51% de las acciones en circulacion de PRCC, asi como autorizaciones
regulatorias y otras condiciones usuales. El cierre de la transaccion se
espera durante el tercer trimestre del ano. Cualesquiera acciones de PRCC
que sigan en circulacion despues de completarse la oferta de compra (con
excepcion de acciones propiedad de CEMEX o sus subsidiarias), seran
canjeadas por efectivo al efectuarse la fusion de PRCC con Tricem
Acquisition, Corp.
Aunque se anticipa la utilizacion de deuda bancaria para financiar la
transaccion, CEMEX estima que su flujo de efectivo libre esperado para el
tercer trimestre de 2002 exceda el valor de los activos adquiridos. Por lo
tanto, CEMEX no anticipa que la transaccion resulte en un incremento de
deuda neta en el tercer trimestre del ano.
PRCC tiene una capacidad de produccion anual de 1.4 millones de toneladas
de cemento y de 1.15 millones de metros cubicos de concreto. Durante el
2001, PRCC registro un volumen de ventas de alrededor de un millon de
toneladas de cemento en el mercado de Puerto Rico.
Lorenzo H. Zambrano, Presidente y Director General de CEMEX, comento: "La
adquisicion de PRCC fortalece nuestra presencia en el Caribe, gracias a la
ubicacion estrategica de Puerto Rico asi como por la solidez de su economia
e industria de la construccion. Confiamos en que realizaremos importantes
mejoras operativas en PRCC, al capitalizar la experiencia de la red global
de CEMEX en sus negocios medulares de cemento y concreto. Asimismo,
esperamos que la transaccion contribuya de inmediato a las utilidades en
efectivo de CEMEX".
Miguel Nazario, Presidente y Director General de PRCC, anadio: "En las
ultimas decadas hemos construido una compania muy exitosa con una buena
posicion en el mercado de Puerto Rico. Durante estos anos, hemos sido
capaces de generar un crecimiento rentable de nuestro negocio y crear valor
para nuestros accionistas. La transaccion propuesta sera benefica para los
accionistas, clientes y empleados de PRCC y de CEMEX".
Los consejeros de PRCC han acordado recomendar a sus accionistas que
acepten la oferta. Varias entidades controladas por la familia Ferre, que
tienen aproximadamente el 29% de las acciones en circulacion de PRCC, han
acordado presentar sus acciones a la oferta y han expresado su apoyo a la
transaccion. Goldman, Sachs & Co. es el asesor financiero de CEMEX en la
transaccion. UBS Warburg es el asesor financiero de PRCC y ha expresado a
la compania su opinion respecto a la transaccion. Los despachos Skadden,
Arps, Slate, Meagher & Flom LLP y LeBouf, Lamb, Greene & MacRae LLP son los
consejeros juridicos de CEMEX y PRCC, respectivamente.
Puerto Rican Cement Company, Inc. fue constituida bajo las leyes del Estado
Libre Asociado de Puerto Rico en 1938. La compania produce y vende cemento,
concreto y piedra caliza, y tiene ademas operaciones en los negocios de
empacado, financiamiento, transportacion, manufactura de agregados, y
bienes raices. Para mayor informacion, visite www.prcement.com.
CEMEX es una compania global lider en la produccion y distribucion de
cemento, con operaciones posicionadas primariamente en los mercados mas
dinamicos del mundo a traves de cuatro continentes. CEMEX combina un
profundo conocimiento de los mercados locales con su red mundial de
operaciones y sistemas de tecnologia informatica a fin de proveer productos
y servicios de clase mundial a sus clientes, desde constructores
individuales hasta grandes contratistas industriales. Para mayor
informacion, visite www.cemex.com.
Contactos
CEMEX: PRCC:
Relaciones con Medios Relaciones con Medios
Daniel Perez Whitaker Ivan Baez
(52-81) 8152-2747 (787) 783-3000
daniel_pw@cemex.com baez@prcement.com
Relacion con Inversionistas Relacion con Inversionistas
Abraham Rodriguez Jose O. Torres,
(52-81) 8328-3631 (787) 783-3000 ext. 3212
arodriguez@cemex.com jot@prcement.com
Relacion con Analistas
Jose Antonio Gonzalez
(212) 317-6017
josegonzalez@cemex.com
Este comunicado de prensa contiene "declaraciones prospectivas" conforme a
la seccion 27-A de la Ley de Valores de 1933 ("Securities Act of 1933") en
vigor, en particular aquellas declaraciones relacionadas con los efectos de
la transaccion, y aquellas precedidas por, seguidas de, o que incluyan
cualquier conjugacion de las palabras "creer", "esperar", "anticipar",
"pretender", "estimar", o expresiones similares. Las declaraciones
prospectivas sobre expectativas de resultados o eventos futuros estan
basadas en la informacion disponible para CEMEX y PRCC a la fecha de este
comunicado de prensa, y ninguna de las companias asume ninguna obligacion
de actualizar cualquiera de estas declaraciones. Las declaraciones
prospectivas no son garantia del desempeno futuro de CEMEX o de PRCC, y los
resultados reales pueden variar substancialmente de los resultados y
expectativas discutidos. Por ejemplo, aunque CEMEX y PRCC han llegado a un
acuerdo definitivo, no existe certeza de que las partes completaran la
transaccion. En caso de que las companias no reciban las aprobaciones
gubernamentales o posturas de venta necesarias, o bien no satisfagan las
condiciones para el cierre de la transaccion, esta podria darse por
terminada. Otros riesgos e incertidumbres relacionados con la transaccion
incluyen, pero no se limitan a, condiciones en los mercados relevantes para
la transaccion propuesta, y la exitosa integracion de PRCC en las
operaciones de CEMEX.
Este comunicado de prensa no representa una oferta de compra ni una
solicitud de una oferta de venta de valores. La oferta publica se llevara a
cabo unicamente por medio de una oferta de compra, carta de notificacion y
demas documentos relacionados. Cuando la oferta de compra de inicio, CEMEX
registrara ante la Comision de Valores y Mercados ("Securities and Exchange
Commission" o "SEC") una declaracion de oferta de compra y documentos
relacionados, y PRCC registrara ante la SEC una declaracion de solicitud /
recomendacion con respecto a la oferta, y tales documentos se enviaran a
los accionistas de PRCC. Se recomienda fuertemente a los accionistas e
inversionistas que lean la declaracion de oferta de compra y la declaracion
de solicitud / recomendacion en relacion con la oferta referida en este
comunicado de prensa, debido a que contienen informacion importante que
debe ser leida cuidadosamente antes de tomar cualquier decision con
respecto a la oferta. Los accionistas e inversionistas pueden obtener sin
ningun costo en el sitio de Internet de la SEC, http://www.sec.gov, una
copia de estos documentos (cuando esten disponibles), asi como de otros
documentos registrados por CEMEX y PRCC ante la SEC. Ademas, la declaracion
de oferta de compra y materiales relacionados pueden obtenerse sin ningun
costo solicitandolos directamente a CEMEX al telefono (52-81) 8328-3631. La
solicitud / recomendacion con respecto a la oferta, asi como otros
documentos relacionados, pueden obtenerse sin ningun costo solicitandolos
directamente a PRCC al telefono (787) 783-3000 extension 3212.