Angostura/CL Financial's purchase of Jamaican spirit company Lascelles de Mercado has been partly blamed for the delay of Angostura Holdings audited year-end accounts.

But Angostura Holdings anticipate that it will now publish its December 31, 2008 audited financial statements by the end of this month after failing to meet its extended April 30 time frame.

"Yes, that is partly the reason as it was one of our recent acquisitions," Angostura's Communications Man-ager, Giselle Laronde-West, told the Wednesday Business, confirming market whispers.

A statement from Angostura Holdings said the delay was primarily due to ongoing discussions with its auditors, Pricewaterhouse-Coopers (PwC), concerning the treatment of a major inter-company receivable from C L Financial Limited and other related issues.

PwC requires additional time to complete the audit of the company's financial statements for 2008, according to a statement from the company.

The CL Financial Group holds 86 per cent of Lascelles which generates some J$2.5 billion to J$3 billion in net income annually.

The purchase deal, at US$9.25 per ordinary share (US$634.9 million) at close in July 2008, has been described as one of the largest seen in the Caribbean. The deal valued Lascelles at US$880 million.

The Jamaican conglomerate up to press time had not commented on the nature of the delay.

More profitable

Angostura said the accounts would be ready on or before May 31.

In January, CL Financial's Executive Chairman Lawrence Duprey who has been spearheading the CL Financial World Brands, said he wanted to devote his attention to developing the group's spirits business which he saw as more profitable than the more restrictive financial sector.

He made the comments during a joint press conference with the central bank where it was announced that CL Financial was facing a major cash crisis involving a number of companies.

CLICO Investment Bank (CIB), the Colonial Life Insurance Company (CLICO) and British American Insurance Company (BAICO) have since been taken over by the government of Trinidad and Tobago and the central bank.

Part of CL Financial's indebtedness includes a US$40 million bond floated in Jamaica to help pay for its acquisition of Lascelles.

Angostura has said that eventually, it will merge its spirits business with that of Wray and Nephew, Lascelles' flagship company, and will likely float the merged company on the London stock exchange.

Last week's statement from Angostura said the company would continue to invest in the core Angostura bitters brand and spirits business both locally and internationally, notwithstanding the travails of parent CL Financial and insurance subsidiary CLICO, saying Angostura remains a viable going concern.

"We are confident that this strategy will add ongoing value for shareholders," the statement said.

In addition to Lascelles and its subsidiary, the group' s key brand-owning companies are currently:

Angostura Ltd - rum and bitters producers based in Trinidad.

Burn Stewart Distillers Ltd - Scotch whisky producers based in Scotland.

Thomas Hine and Co Ltd - cognac producers based in France.

Fassbind - Eaux-de-Vie producers based in Switzerland.

Distribution companies include:

Angostura USA, located in Fort Lauderdale, Florida.

International Beverage Corporation, located in Atlanta, Georgia, USA.

Burn Stewart UK, located in East Kilbride, Scotland, United Kingdom.

Burn Stewart Taiwan, located in Taipei, Taiwan.

CL World Brands Duty Free, located in Switzerland.

Angostura France, located in Paris, France.

Societe Dugas, located in Paris, France.

Paragon Vintners Ltd, located in London, UK.

business@gleanerjm.com