BRIDGETOWN, Barbados, Thursday October 1, 2015 – Amid a takeover bid by a St. Lucia-registered company, Barbadian beverage manufacturer Banks Holdings Limited (BHL) is urging its shareholders not to make any decisions on giving up their stake in the company until a valuation of its shares is conducted.
SLU Beverages Ltd, the largest single BHL shareholder, is offering to purchase all outstanding shares at BDS$4 (US$2) per share after last week acquiring the 13.1 million shares of Massy Holdings, the second largest shareholder at the time, in a block trade on the Barbados Stock Exchange. BHL shares were listed at BDS$2.49 (US$1.25) per share the day of the stock purchase.
BHL confirmed today that it had received an offer and take-over bid from SLU and, in a notice published today, said its Board has engaged the services of an independent professional financial advisor to undertake the valuation and issue a Fairness Opinion – a professional evaluation by an investment bank or other third party as to whether the terms of a merger, acquisition, buyback, spin-off, or privatization are fair.
“Accordingly, please be advised that the Board shall issue its response to the offer by way of a Directors’ Circular to shareholders which shall be issued and mailed not later than October 19, 2015, being seven days before the offer terminates,” stated the notice signed by BHL Chairman G. Anthony King on behalf of the Board of Directors.
“In the meantime, shareholders are advised that it is in their interest not to make any decision on the sale of their shares until they have received the BHL Directors’ Circular. If you have already tendered your shares, you have the right to withdraw your shares up to two business days prior to the termination of the offer.”
SLU’s offer expires at 3 p.m. on October 26.
SLU Beverages Ltd. is a holding company of Cerveceria Nacional Dominicana S.A, a leading beer and malt producer in the Dominican Republic which is controlled by Brazilian corporation Ambev S.A. Ambev.
If it is successful in its takeover bid, SLU will become the owner of Barbados’ largest drinks producer which owns Banks Breweries, Pine Hill Dairy, Barbados Bottling Co. Ltd and Banks Distribution Ltd.