Oct 2006 Financial News

Scotiabank Bids to Acquire Majority shares in Dehring Bunting & Golding Limited

Oct 23, 2006

Scotiabank and Scotiabank Jamaica will jointly bid to acquire up to 80% (minimum 75%) of shares of Dehring Bunting and Golding (DBG) Limited. The offer is a cash bid and will be priced at JMD21.08 or TT$2.00. The current price of DBG on the local market is TT$1.85 while in Jamaica its close on Friday was JMD20.50.

According to an article appearing in the Jamaica Observer on Sunday, October 22, 2006, the offer is expected to open at 9:00 am on October 23, 2006 and is expected to close at 5:00 pm on November 27, 2006. In the same article, Rob Pitfield, Scotiabank’s Executive Vice President states, “We believe that DBG will complement Scotiabank’s existing operation in Jamaica”. In addition, Scotiabank stated that upon acquisition of the shares, DBG will continue to be a listed company on the Jamaica and Trinidad Stock Exchanges and will retain its current team of executives.

DBG’s Company Secretary, Mark Golding, advised shareholders on Friday that it had received and intended to review the acquisition offer from Scotiabank. According to the Jamaica Observer, on receipt of the Offer, DBG’s Board of Directors will appoint a special Board Committee to review the Offer and advise the Board as to the recommendation to stockholders. This is a regulatory requirement of both Trinidad and Jamaica. The Board will shortly thereafter issue a Director’s Circular to DBG’s shareholders in compliance with the regulatory requirements in both jurisdictions.

Source : Scotiabank Release (October 20, 2006)
The Jamaica Observer (Ocober 22, 2006)

Sreshtha Tewari
WISE Research Team