BRIDGETOWN, Barbados, Thursday July 27, 2017 – Cable and Wireless (West Indies) Limited (CWWI) has launched a bid for full control of its Barbados business.
Once it succeeds, it will be delisted from the Barbados Stock Exchange (BSE).
CWWI this week submitted a proposal to its subsidiary Cable & Wireless Barbados to acquire all its issued and outstanding common shares that it does not already own by way of an amalgamation. CWWI currently owns approximately 81.07 per cent of the issued and outstanding common shares.
A special meeting of Cable & Wireless Barbados shareholders has been set for August 24, to consider the recommended offer.
Under the proposed amalgamation, shareholders will surrender their shares in Cable & Wireless Barbados in exchange for a cash payment of BDS$2.86 (US$1.43) for each common share.
CWWI said the cash consideration offered per common share represents a premium of 31 per cent over the closing share price of July 24, 2017, the day before the announcement of the amalgamation.
“The cash offer was deemed fair from a financial point of view by an independent and well-respected accounting firm, Deloitte & Touche, [which] was engaged by the independent board members of Cable & Wireless Barbados to give an objective fairness opinion on the offer, and determined that it was fair from a financial point of view to the shareholders of Cable & Wireless Barbados,” a CWWI statement said.
As such, the Board of Cable & Wireless Barbados, including the independent Board members, is recommending the transaction to its shareholders.