Aug 2011 Financial News

Black Sand stands firm on offer price

Aug 05, 2011

Black Sand Acqusition Inc on Thursday re-affirmed its US$3.86 per share offer price for Lascelles deMercado and Company in response, it said, to shareholder queries on what went into the pricing of the shares.

But the William 'Billy' McConnell-led investor group said after market close Thursday that it would have bid higher at US$4.22 per share, but its offer took into account the recently announced dividend paid to shareholders and resulting reduction in Lascelles' assets via the interim dividend of J$5.50 per share and special dividend of J$25.80 per share.

The distributions paid July 27 were equivalent, said Black Sand to US$35 million.

"Had these dividends not been paid, the offer price for the ordinary shares would have been US$4.22.

Lascelles, at the end of June, had net cash of J$6.9 billion, enough to cover the dividends which in local currency terms amounted to just under J$3b.

The US$4.22 price would have valued the takeover offer at US$365 million to US$405 million.

Black Sand said the offer circular would become available today, August 5.


Source:
lavern.clarke@gleanerjm.com
Jamaica Gleaner
Friday August 5, 2011

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