Grenada's Prime Minister Keith Mitchell. The Grenadian government is selling two-thirds of its holdings in Cable and Wireless Grenada Limited, but plans to retain four million shares or 10 per cent of the company. - File

Grenadians on Tuesday converged on a local bank seeking to snap up shares of Cable and Wireless Grenada Limited that the island's government had placed on sale at 37 per cent discount.

Communications Minister Gregory Bowen announced the offer during a radio broadcast, saying developments on the global market had prompted the decision to reduce the price per share from EC$20 (US$7.40) to EC$12.50 (US$4.62).

"This special price is intended to ensure that as many Grenadians as possible have the opportunity to participate in the divestment programme," said Bowen who also disclosed that the shares would be offered in two tranches.

The Keith Mitchell administration is divesting some eight million C&WG shares or two-thirds of its 30 per cent holdings in the telecoms.

"This first four million will be sold until May 4, (and) if during that time the shares are oversubscribed, the excess will be allotted out of the second tranche at a price to be determined before the remainder is put on sale," Bowen said.

"However, if an investor who was among those who oversubscribed in the first tranche does not wish to participate in the second tranche the money will be refunded."

The initial offer should raise EC$50 million for the Keith Mitchell-led government, which ostensibly needs the liquidity.

Too good to resist

Nationals who converged on the Grenada Cooperative Bank to purchase the shares Tuesday said the offer was too good to resist.

"At EC$12.50 I cannot go wrong," said Cherriann Blackman, a mother of three children. "This is an investment for my children. I am grabbing hold of this opportunity now because the second tranche of shares would most likely be more expensive."

Under the sale offering, the first four million shares will only be available to Grenadians at home and abroad.

Earlier this year, the government announced plans to sell part of its shares in the telecommunications company, saying it was part of its fiscal reform strategy developed more than two years ago and supported by the International Monetary Fund and World Bank.

The government will retain four million shares or 10 per cent of the issued shares of Cable & Wireless Grenada.

The share sale, said the administration, "provides an excellent opportunity to the Grenadian public to hedge their savings against inflation."

The offer has been welcomed by the main opposition National Democratic Congress, but criticised by president general of the Technical and Allied Workers Union, Chester Humphrey, who described it as "an instrument for the unfair redistribution of wealth."