Caribbean Cement Company Limited, CCCL, has signed an operating lease termination agreement with its holding company, Trinidad Cement Limited, TCL.
The companies have also signed an equipment sale and purchase agreement for the assets that were subject to the lease agreement that was terminated.
According to a statement issued by Caribbean Cement, the deals were inked last Friday. But, the announcement was made on Monday.
CCCL also says the consideration it will pay to TCL to purchase the equipment is USD$118-million. This amount is to be fully paid 90 days from the day the deals were signed.
The multi-million US dollar payment will be made in instalments
The equipment being purchased by CCCL mainly consists of the Kiln 5 and Mill 5 processing units at the company’s Rockfort facilities in Kingston.
The lease agreement had been entered into in July 2010.
The latest transactions are being entered into pursuant to a memorandum of understanding that was entered into by TCL and CCCL in March this year.