Sep 2007 Financial News

Local consortium pushes offer in BS&T battle (Barbados)

Sep 04, 2007

ISLAND Properties Limited (IPL), a local consortium, has again upped its cash offer for BS&T shares, this time to $8.75 per share on the Barbados Stock Exchange.

This announcement came in a press release yesterday, which also indicated that Island Properties Limited (IPL) is deeply interested in the large BS&T real estate portfolio. This new offer by IPL is the highest cash offer for BS&T shareholders to date.

This new offer from IPL comes in the wake of Neal and Massy, the Trinidadian commercial giant and the first company to start this BS&T battle, announcing the amendment to its original cash offer to now stand at $8.50 per share. That offer closes on October 18, 2007.

Meanwhile, the current Ansa McAL, the other Trinidadian conglomerate, offer for the BS&T stands at fifty cents below the new Neal and Massy offer, bringing that to $8 per share. That offer came moments before the closing date of its original offer in late August.

Leaders of IPL, Colin Brewer and Tony Hoyos, believe that the true value of the BS&T Group has to fully take account of the long-term potential of its assets and the lack of vision of existing and past management to realise this potential.

Moreover, IPL highlights one of the major properties of BS&T in Bridgetown, that is the Pierhead property. The release reiterates, BS&T owns considerable acreage at the Pierhead in Bridgetown, which for many years they have talked about developing, but to date they have achieved nothing. It was further stated, We would give the highest priority to this Pierhead project in Bridgetown and we would ensure that it proceeded forward without any further delay.

The IPL Group believes that their vision on such an initiative can be a symbol of 21st century development in Bridgetown and become a famous landmark of the island and internationally renowned. It requires a grandiose vision, supreme confidence and the skill to obtain the full support of the social partners, which current management is unable to deliver, remarked Hoyos.

Interestingly, Brewer points out: Even if the take-over bids currently offered to shareholders are unsuccessful, the existing shareholders must and will demand an overhaul of the Board and senior management of the Group.

Furthermore, in the press release of the IPL, Brewer says, We have now gained significant shareholding in the BS&T Group and are ready to support action to restructure the Group if any other shareholders are prepared to act with us, including Neal & Massy.


Source:
The Barbados Advocate
Tuesday 4th September, 2007

http://www.barbadosadvocate.com/NewViewNewsleft.cfm?Record=32686