Tecnoglass Offers Warrant Exchange and Announces Quarterly Dividend

Colombian construction materials firm Tecnoglass today announced two stock offerings, initiating a warrant exchange offer and a new quarterly dividend.

The Barranquilla-based glassmaker will give those holding warrant the chance to exchange 2.5 outstanding warrants for one Tecnoglass ordinary share issued in connection with its March 2012 initial public offering. Shares issued in private placements prior to, or simultaneously with, its December 2013 initial business combination are also eligible. The warrant exchange offer will remain open for 25 days, ending on September 8 at 5 p.m.

The company will also begin paying out a regular quarterly dividend, with the first payment scheduled for September 23. Shareholders will receive a quarterly dividend of $0.125 per share, or $0.50 per share each year. The company will offer the dividend in either cash or ordinary shares depending upon the shareholder’s preference (with the payout defaulting to shares if neither option is selected during the election period).

“We are pleased to commence this warrant exchange offer and also provide the opportunity to return a portion of excess capital to all shareholders through our newly initiated dividend policy,” said José M. Daes, chief executive Officer of Tecnoglass.

These announcements come after a strong 2015 for the growing company. Technoglass’ total revenues increased 21.2% to $239.4 million in 2015 compared to the prior year, lifted by a 40% growth in U.S. revenues. Its operating income also rose to $39.6 million compared to $27.2 million in the prior year.

In an interview with Finance Colombia, José Baes said that he expects even better growth ahead. His optimism is in part based on Tecnoglass making a transition from sourcing certain high-end products to manufacturing them on site.

“By making the glass in-house, we reduced the cost by 30% to 40% of the material,” said Baes. “So that puts us in a totally different ball game, and I’d like to show that, in the next two to three years, we plan to grow by 25% at least every year organically.”

Photo: Tecnoglass’ international headquarters is located in Barranquilla, Colombia, and the glassmaker also maintains facilities in Miami, Florida. (Credit: Tecnoglass)