Dec 2007 Financial News

Angostura offer triggers JSE takeover rules

Dec 05, 2007

Angostura's offer to purchase just under 50 per cent of Lascelles de Mercado has triggered the take-over rules of the Jamaica Stock Exchange (JSE).

Yesterday, the local regulator issued a statement stating that "after carefully considering all the information and advice provided, the exchange has determined that the activities of Angostura Ltd constitutes an "offer" within the meaning of Appendix 1 - Takeovers and Mergers of the rules of the JSE.

Under JSE rules, an offer include "takeover and merger transactions however effected, including reverse takeovers, partial offers and offers by a parent company for shares in its subsidiary."

The rules require an offeror company to give shareholders sufficient information and time to assess and make a deision.
Angostura Holdings executive director, Michael Carballo, shrugged off the decision as one that required a minor adjustment to the offer.

"We have no problem with the decision, we will have to tweak the offer document so that it complies fully with the rules," he told the Business Observer. "The transaction will not change substantially."

Two weeks ago, Angostura offered to acquire a 49.24 per cent stake in Lascelles for US$10.65 ($760) per ordinary share.

Yesterday, the stock price closed at $565.
The offer excludes the shares held by two companies under the control of chairman George Ashenheim and managing director William McConnell, who own a combined interest of 50.76 per cent, which means that the offer was extended to all remaining shareholders.

The proposed deal also involves the transfer of preference shares in the company that for US$0.30 a share upon completion of the transaction.

Marlene Street-Forrest, general manager of the JSE, said "we are having discussions with the affected parties and will continue to work with them to ensure that the rights of shareholders and the integrity of the market are protected."


Source:
The Jamaica Observer
Wednesday, December 05, 2007

http://www.jamaicaobserver.com/magazines/Business/html/20071204T220000-0500_130055_OBS_ANGOSTURA_OFFER_TRIGGERS_JSE_TAKEOVER_RULES.asp