Jul 2006 Financial News

BS&T does not fear a Takeover by NML

Jul 03, 2006

All figures quoted in Barbados Dollars

In an article published by the Nation News of Barbados on July 3, 2006, it was reported that the Directors of Barbados Shipping & Trading (BS&T) were not too concerned about the possibility of a takeover by one of the Company’s largest single shareholder- Neal &Massy Ltd.(NML).

As reported, the Chief Executive Officer of BS&T, Mr. Anthony King, said that although NML’s shareholding in the Conglomerate was significant, it would need a 25% stake to trigger a takeover. The CEO also stated that while anything is possible- he could not see it being in Neal & Massy's interest to go off independently and take action without consideration by the Board of BS&T.

Mr. King also noted that previously the two companies had a "standstill arrangement" which limited the amount of shares each company could have in the other to 20%. However, this may no longer be valid with BS&T selling down its equity to just below 5%.

In its Half Year Results for the period ending March 31, 2006, BS&T reported an unrealized investment loss of $4.4 million, mainly on its investment in NML.
In addition, it reported a reduced profit, which after tax stood at $17.9 million – down from $39.7 million for the corresponding period last year.

In another article posted by The Barbados Advocate on July 3, 2006, Mr. King said that he was optimistic that profits from core operations will rise to rival those seen when the Company held a larger stake in NML. He also noted that this would depend on the rate at which BS&T could bring in new businesses, make the right investments and the right acquisitions. As such, he was not able to give a specific time frame in which this would be achieved.


Source:
Nation News (Barbados)
The Barbados Advocate

Gia Singh
WISE Research Team