Oct 2009 Financial News

Anbell to spin off media business - Two IPOs likely for the junior market

Oct 07, 2009

Anbell Group, which operates in the advertising and telecommunications industries, will within a matter of weeks be going to the market to raise funds for a spin-off company.

"As part of the group's business realignment strategy we are already far advanced in the rationalisation of our media operations," said Andrew Pairman, chief executive officer of Anbell Group Limited.

Pairman has formed a new company, Intelligent Multimedia Limited (IML), and is, he said, contemplating an initial public offering and/or joint venture arrangement to capitalise the operation.

An IPO is also being arranged for Pairman's other new venture, Anbell Renewable Energy Solutions (ARES), his vehicle into a new market segment.

IML will become the holding company for all of Anbell's media assets.

Joint venture

The company was registered with the Companies Office of Jamaica in July.

With just 1,000 shares, Pairman is currently recorded as the sole shareholder.

Pairman declined to give details on the joint-venture partnership he is negotiating and further information on the company, citing ongoing discussions and competitive reasons.

Already Anbell operates three entities: Anbell Agencies Ltd, which provides handsets, accessories and other wireless products and services to individuals, organisations, dealers and retailers; Anbell Media Limited which provides outdoors advertising such as electronic signage through its videoboards; and Anbell Telecommunications Limited which deals in Internet services.

Meantime, Pairman says he is close to launching the public offering for ARES.

"We are now weeks away from a formal IPO announcement pending the completion of interviews with prospective brokers," he said.

"The capital to be raised will be at the upper end of the range of the JSE Junior Stock Market," he said.

The funds raised, which Pairman estimates will exceed $400 million, will finance the build-out of operations at ARES.

The company would be the second such placement, following Access Financial Services Limited's planned $18.34 per share offer scheduled for October 14.

Access is targeting at least $100 million of new capital.

ARES's business will be focussed on solar energy, energy audits, system design, grid connection, among other areas.

"We intend to generate leads by selling solar and other renewable energy and sustainable living products and resources," said Pairman.

Energy security policy

There are long-standing renewable energy firms in Jamaica in the business of alternatives, including solar and wind power, but the market has become far more attractive to investors in recent years under a push by the state to redefine the country's energy consumption patterns and reduce dependence on imported expensive fossils.

The Petroleum Corporation of Jamaica, a leader in implementation of the energy security policy, notes that Jamaica receives an estimated average of 177 MJ/m2 per year of direct solar radiation, but only converts about one per cent for consumption.

There are approximately 7,800 residential solar water heater installations in Jamaica and so far it has been determined that the average household saves about 1,825 kWh per year by operating solar water heaters.

Pairman said ARES's solar products will be targeted at both residential and commercial market segments.

"We believe it has an extremely large growth potential, in fact, the sun is Jamaica's most abundant energy source," he said.


Source:
sabrina.gordon@gleanerjm.com
Jamaica Gleaner
Wednesday October 7, 2009

http://www.jamaica-gleaner.com/gleaner/20091007/business/business8.html