Jul 2008 Financial News

CL Financial creates holding company for Lascelles shares

Jul 23, 2008

Lawrence Duprey's CL Financial Group has created a special purpose vehicle as holding company for its new acquisition Lascelles deMercado, bought through its spirits subsidiary Angostura Limited.

CL Spirits Limited, which is 100 per cent owned by CL Financial, was created two months ago, said Michael Carballo, for the sole purpose of holding the Lascelles shares that were offered up to the Trinidad company under its US$9.25 per share acquisition bid.

Final tranche

Angostura will pay the second and final tranche of US$4.75 per share on July 28, after which the acquired holdings, which are now held in escrow by Citibank NA in Kingston would be transferred to CL Spirits.

CL Financial has said it would have at least an 86 per cent share in Lascelles when the deal is finalised.

Carballo said Tuesday that no decision had been made yet as to whether CL Spirits would be the vehicle for the planned listing of the amalgamated spirits businesses of Angostura and Lascelles.

"That has not been worked out as yet," he said.

The Jamaican conglomerate is in the business of spirits, merchandising, passenger and cargo handling, insurance and automotives, but it was primarily its ownership of rum company Wray and Nephew Limited, and secondarily, Globe Insurance Company that attracted Duprey and made it a takeover target.

The new CL Spirits Limited has a three-member board, said Carballo: Duprey as chairman, and Carballo and CL Financial's Joffrey Leid as directors.

Duprey already has a seat on the Lascelles board, but the board's composition is expected to change once the deal goes through at the end of the month.

Profitable operations

Its composition, Carballo has said, is to be decided. Duprey, however, is expected to assume the chair eventually.

William McConnell will rem-ain as group managing director of the company, which is one of Jamaica's most profitable operations with more than $2 billion of net income in each of the last two years.


Source:
Jamaica Gleaner
Wednesday 23rd July, 2008
http://www.jamaica-gleaner.com/gleaner/20080723/business/business3.html