Jan 2008 Financial News

Sagicor to pay BDS$79 million for Barbados Farms

Jan 15, 2008

Sagicor Financial Corporation’s offer of Bds$5 per share for Barbados Farms Ltd (BFL) will cost the company Bds$79,383,155.

This according to a published notice from Sagicor to shareholders of Barbados Farms Ltd.

“The cash component of the consideration (being 35 per cent of the total offer price of Bds$5 per share) for all shares validly tendered, will be paid and settled in full within 30 days of the closing of the offer, or by Friday, February 8, 2008,” the notice read.

Sagicor, which has assets in excess of Bds$7.2 billion, shut out its rival Clico Holdings subsidiary—CLSS Holdings—through “lock-up” agreements with major BFL shareholders.

Sagicor announced in a notice to shareholders that 15.83 million BFL shares representing 76.8 per cent of the company’s shareholding had been tendered to it. This included shares tendered by entities owned or controlled by Sagicor.

The company stated that the remaining consideration of 65 per cent of the total offer price will be satisfied by the issue of 10,319,819 common shares in Sagicor.

“No fractional shares in Sagicor Financial Corporation will be issued. Barbados Farms’ shareholders, who would otherwise have become entitled to receive fractional shares in respect of the number of Barbados Farms shares tendered, will receive a cash payment in lieu of such fractional shares,” Sagicor’s notice, published yesterday, stated.

It added that the property of Barbados Farms was formerly part of the assets of Barbados Shipping & Trading Company Ltd (BS&T).

The Neal & Massy Group is now facing a legal battle with the Barbados Securities Commission to acquire BS&T.

As of June 30, 2007, the gross assets of BFL were Bds$53,377,111 and its net profit was Bds$1,599,099.

BFL owns more than 1,400 acres of land. Sagicor has stated that its controlling interest in BFL will allow the Group to facilitate the orderly transition of non-productive lands into its next viable alternative.

It informed shareholders that Sagicor plans to collaborate with BFL management to bring “new and innovative” thinking to its business, to modernise and transform agricultural production to achieve efficiency and improve the company’s operating performance.

Sagicor said non-productive assets will be restructured and re-deployed to deliver value to the company and to Barbados.

“Where feasible, lands not suitable for agriculture will be transitioned in an orderly manner to their next best use, including housing developments through the provision of housing lots and/or houses,” Sagicor’s statement ended.

Source:
SANDRA CHOUTHI
The Trinidad Guardian
Tuesday 15, 2008

http://www.guardian.co.tt/business5.html