Arthur Lok Jack, chairman of Neal and Massy, advised shareholders on August 24 that the planned merger with BS&T had been terminated by mutual consent, but that Neal and Massy was still going after the company by way of a takeover bid. - file
Neal and Massy Holdings Limited, a Trinidad-based conglomerate with interests throughout the Caribbean, last week increased its holdings in Barbados Shipping and Trading Company Limited by 3.78 million shares, in a transaction on the Trinidad Stock Exchange valued at TT$107.35 million or TT$28.35 per share.
The deal, executed Friday at a near six per cent premium or TT$1.56 above the last stock's last closing price, increases Neal and Massy's stake in the Barbados conglomerate from 23 per cent to 27.9 per cent or 21.17 million shares, putting the company closer to its goal of a full takeover of BS&T.
Candace Ali, head of group corporate communications at Neal and Massy, said Tuesday the company was not in a position to disclose the source of the acquisition.
The move, however, is only the latest parry in a bid rivalry between Neal and Massy and the ANSA McAL group, also of Trinidad, for BS&T that keeps pushing up the offer price and revaluing the listed company month by month.
Neal & Massy, whose associated companies and subsidiaries outside its home territory span the Eastern Caribbean, Jamaica, Barbados, Guyana, and Miami, launched its takeover bid for BS&T on August 24 - the offer was amended September 1 - weeks after a descision by the company to discontinue their merger plans.
Its counter move for a takeover gives BS&T shareholders the option of taking cash only of B$8.50 (US$4.25) per share, or opting for a combination package of one N&M share for every 2.75 shares of BS&T held plus B$1.80 in cash for each BS&T share.
The cash only option, which was originally priced at B$7.20 (US$3.60) is available only to shareholders who are non-residents of Barbados.
The offer closes October 18.
Three weeks later, September 20, AMCL Holdings Limited — the vehicle created by ANSA to acquire BS&T — increased its bid for a second time to B$9 per share, up from B$8 per share, pushing the value of its offer for a 51 per cent stake to B$346 million (US$173 million).
The original AMCL bid in July was made at $7 per share.
The value of N&M's offer, which closes October 18, varies according to take up on each option, and the value of its stock. The N&M share traded last Friday in Trinidad at TT$48 (B$15.38; US$7.25).
lavern.clarke@gleanerjm.com
