Feb 2008 Financial News

Angostura to pay out J$22b - In first tranche of Lascelles deal - Acquisition repriced at US$618m

Feb 11, 2008

Michael Carballo, executive director of Angostura Limited, says the spirits company expects to pay out US$309 million (J$22.2 billion) in the first tranche of the two-tiered deal to shareholders of Lascelles deMercado and Company.

At that estimate, Financial Gleaner calculations indicate that the Trinidad company has secured more than 68.6 million shares under its mandatory offer, based on the initial US$4.50 per share payout.

The shares tendered will be held in escrow by Citibank NA until the final payment of US$4.50 to US$6.15 per share.

Lead broker Gary Peart of Mayberry Investment Limited declined comment on the full take-up.

Angostura, meantime, said it expects the deferred payment to cost another US$309 million, suggesting it anticipates wrapping up the deal before the February 2011 deadline and triggering the discount price mechanism.

Essentially, the company anticipates the acquisition will cost US$618 million (J$44.5 billion) or US$9 per share.

The deal was initially cast as a potential US$900 million (J$64 billion) acquisition.

Dissuading Shareholders

Angostura, while the offer was on the table, had attempted to dissuade shareholders from selling, having earlier indicated it was not interested in full ownership, though the deal was so structured.

"In takeover situations, one can not set any maximum limits," Carballo said in comments to the Financial Gleaner this week.

"We wanted strong Jamaican participation in the company going forward however."

He affirmed his company's promise to keep Lascelles listed on the Jamaica Stock Exchange, adding that Angostura would neither delist the stock nor rename it.

Angostura Limited a Trinidadian firm offered to acquire Lascelles' 96 million ordinary shares at US$9 to US$10.65 a unit for ordinary shares and US$0.30 a share for its 10,000 six per cent preference shares.

Source:
Susan Gordon - Business Reporter
The Jamaica Gleaner

http://www.jamaica-gleaner.com/gleaner/efg/20080208/localnews/local2.html