Wed | Aug 15, 2018

Cornerstone makes $3b bid for Barita

Published:Thursday | July 19, 2018 | 6:20 PMSteven Jackson

 

Cornerstone Investments Holdings Limited released its offer circular for a majority stake in Barita Investments Limited in a deal worth just over $3 billion at $9.20 per share.

The offer at a 20-cent premium on Barita’s last trading price of $9 per share, values the investment company at $4.1 billion.

Cornerstone, which is led by Paul Simpson, is seeking to acquire 75 per cent of Barita or 334.4 million units.

“The offerer entered into an agreement with Rita Humphries-Lewin and Karl Lewin whereby they agreed to accept the offer and sell the offerer as many share as it would take to get to the offerer to a 75 per cent shareholding but no more,” stated the offer circular filed with the Jamaica Stock Exchange.

Humphries-Lewin holds 76.3 per cent of total shareholding and Karl Lewin 1.27 per cent. Humphries-Lewin also agreed to keep at least a 2-per cent stake in Barita and remain a shareholder for at least two years after the deal.

Lewin will cease to be a director following the transaction. Cornerstone expects Barita’s board to include Chairman Mark Myers; deputy chairman Paul Simpson, the CEO of Cornerstone; Ian McNaughton managing director at Barita; Humphries-Lewin; Duncan Stewart; Robert Drummond; Carl Bruce; James Godfrey and Carl Domville, on conclusion of the transaction.

The offer for the shares will be open to subscription from July 26 to August 16.

steven.jackson@gleanerjm.com