Dec 2007 Financial News

CLSS matches offer

Dec 13, 2007

CLSS Holdings Limited is calling for Barbados Farms Limited (BFL) shareholders, who may have tendered their shares to the Sagicor Financial Corporation to immediately withdraw such shares pending receipt of their amended offer, which will match that of the regional company.

The subsidiary and affiliate company of Clico Holdings (Barbados) Limited was the second company to enter the bid for Barbados Farms Limited (BFL), after Agricultural Investments Limited (AIL) had initiated action geared towards obtaining controlling interest of the land holding entity.

In today's press, an advertisement informs BFL shareholders of an increase in CLSS's offer price to Bds$5 cash, for each share in BFL tendered and accepted in accordance with its offer dated September 28, 2007.

The advertisement also indicated that CLSS has submitted its Notice of Change and Variation to The Securities Commission and will send a copy to each shareholder on receipt of the Commissions approval of the document.

This comes after the Board of Directors of BFL advised shareholders not to accept the amended CLSS offer of $4.25, stating in a circular to shareholders that based on discussions with PriceWaterhouse-Coopers (PWC), they consider the amended offer to be inadequate from a financial standpoint.

This advice was similar to that offered in November after a Fairness Opinion was issued by PWC following an earlier CLSS offer of $4 per share, where it was also argued that the latter offer was inadequate from a financial point of view.

Sagicor Financial Corporation entered as the third company in the hunt for ownership of BFL, and is seeking to purchase any and all of the outstanding common shares of BFL, not already owned or controlled by Sagicor, at $5 per share, 65 per cent of which is to be made up by the issue of shares in Sagicor, and 35 per cent to be paid in cash.

In a recent circular to their shareholders, the Board of BFL stated that in light of the offer from Sagicor, shareholders should allow some time for this offer to be received subject to recognising the expiry date of the CLSS offer.

In today's advertisement, CLSS stated that they believe that their all cash offer is superior to any combined stock and cash offer of equal value, and therefore advise Shareholders to await receipt of their enhanced offer and not to accept the combined stock and cash offer recently made by Sagicor Financial Corporation. (RH)

Source:
The Barbados Advocate
Thursday 13th December, 2007
http://www.barbadosadvocate.com/IndexNewBusinessleft.cfm?Type=B