Mar 2008 Financial News

Status quo at Lascelles - Hands-off posture by Angostura ... for now

Mar 07, 2008

Lascelles deMercado's top executive William 'Billy' McConnell said yesterday that the group's board and structure will remain unchanged for at least the next three years, despite its takeover by the Trinidadian outfit, Angostura Limited.

Maintaining the status quo includes keeping all the Lascelles subsidiaries, McConnell told shareholders at the group's annual meeting, scotching speculation that Angostura was planning a sell-off of businesses considered to be non-core.

"What I can tell you is that I have personally had a discussion with Lawrence Duprey, (who) has told me that he very much likes what he sees of Lascelles deMercado, which is why he has put down a lot of money to purchase it," McConnell told shareholders.

"It is his intention to keep Lascelles deMercado as it is for as long as possible without change."

At the very least, McConnell suggested, things will stay very much the same until 2011, when Angostura makes the final payments on its average US$9 per share it offered shareholders for their ordinary stock.

Under the takeover offer, Angostura acquired over 80 per cent of Lascelles deMercado's voting stock, shareholders to be paid over half of the cash now. It has up to 2011 to pay the remainder, but can close earlier, if it wishes.

Lawrence Duprey, who owns Angostura's parent, CL Financial, had indicated that he wanted McConnell and other key people as Lascelles to stay onboard until the deal was closed. But it was expected that Duprey would be putting his own people on board and to moving quickly to put his own brand of aggression on Lascelles, whose flagship is the rum manufacturer, Wray and Nephew.

Angostura's main product is the famed Angostura Bitters. It also manufactures rums.

But reiterating Angostura's hands-off posture, McConnell said: "If there is a change in plans I would be the first to communicate that to you, but please bear in mind that until this transaction is complete - and it is not complete until the last money is paid - there has been absolutely no change in the way we operate."

In the last financial year Lascelles generated profits of over $2.6 billion on revenues of just over $21 billion. Profit was up 4.3 per cent.

The growth in revenues was driven mainly by increased sales in the company's flagship liquor, rums, wines and sugar segment, which grew 24 per cent.


Source:
John Myers Jr., Business Reporter
john.myers@gleanerjm.com
Jamaica Gleaner
Friday March 7, 2008

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