Cornerstone makes $3b bid for Barita
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 HumphriesLewin 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.
The Barita stock did not trade on Friday. It closed the week at $9 per share.