The Securities and Exchange Commission’s Office of the Government Counsel is reviewing whether Cemco Holdings should be required to buy out minority shareholders of publicly Union Cement Corp, after acquiring the majority stake in the company.
An SEC source said that the matter was raised to the SEC OGC after National Life Insurance Co., a minority shareholder of Union Cement, had asked the SEC to reconsider an en banc decision which stated that Cemco need not buy out the minority shares in Union Cement since it did not fall under the tender offer rule.
"It is now with the OGC. It was brought there after SEC decided that it should not fall under the tender offer rule and National Life appealed the ruling," the official said. The SEC official noted that while Cemco is now the majority shareholder of Union Cement, it did not make a direct acquisition of Union Cement.