By Al Edwards, Financial EditorTHE RJR Communications Group, headed by Lester Spaulding, will be looking to cross list on both the Barbados and the Trinidad and Tobago stock exchanges towards the end of next year.
The media group is looking to become a fully integrated entity with interests in both radio, television and is negotiating to acquire interest in a print operation.
It is looking to build on exporting home-grown programmes, thereby earning foreign exchange as it looks to transform itself into a diversified media corporation. Currently, revenues from the group's television arm, TVJ, are outstripping the radio business.
RJR has completed the equipping of a new building to house TVJ Television and production and RJR News and Sports all under one roof at a cost of approximately $245 million.
LISTING NEXT YEAR
"With our currrent investment in infrastructure, consistent profitability and earnings per share (EPS), we would consider cross listing perhaps sometime next year," said RJR's chairman and managing director Lester Spaulding, after pointing to the group's $245 million investment in equipment and a new building housing the television and radio news centre.
Speaking Monday at a stockholders' presentation at the Lyndhurst Road headquarters in Kingston, he added: "We considered it (cross listing) earlier this year but decided to place our focus on earnings, profitability and rolling out local programmes like 'Rising Stars'. The reason why we are able to talk about cross listing is based on the fact that we have re-tooled and re-positioned ourselves in order to maintain market leadership. We are more likely to cross list sometime at the end of next year."
Today, the group will be hosting its Annual General Meeting (AGM), where it will be looking to increase its authorised share capital and will later be proposing a rights issue to raise $250 million. The rights issue will have a facility for shareholders to pick up additional shares from a created pool.
ADDITIONAL FUNDS
Speaking with Wednesday Business yesterday, Mr. Spaulding said: "The Group intends on raising additional funds so that it can make a partial debt repayment and second to ensure that the rights issue is successful."
The cost of completing its headquarters complex, additional debt and damage caused to property as a result of Hurricane Ivan have seen net profits for the six months ended September 30 drop from $65 million in 2003 to $21 million in 2004.
The RJR group has restructured and has introduced a new management team in order to maintain and consolidate its market dominance.
"We at the RJR group have been the leaders in the media in the Caribbean and we do take an active role in the region and we believe as a philosophy that integration of some kind is critical to our future," Mr. Spaulding told the stockholder's presentation. He said, "We have had strong financial growth of 97 per cent over the last five financial years and increased profits by 186 per cent. We have also increased shareholder funds by 216 per cent and have a strong debt to equity ratio."
