Ciboney shell company back on the market

FINSAC, THE majority owner of Ciboney Group Limited, is making another try at selling its stake in the company, which has no assets.

Ciboney said in a market filing last week that attempts by Finsac to sell were aborted after bids for the shares failed to result in a deal but noted that another invitation to buyers to bid for the company was pending.

Ciboney traded at 11 cents per share on Monday, valuing the company at $60.06 million. Finsac’s 72 per cent is worth approximately $43 million.

At the first invitation in 2018, Finsac touted Ciboney’s position as a listed company as a drawing card for potential buyers. On Monday, Errol Campbell, who is the manager of Finsac and chairman of Ciboney, declined to discuss the latest push to offload the shell company. The second offer was advertised on Sunday, August 4.

“Should this be successful, then it is anticipated that a change of ownership will be effected during the second quarter of the current financial year,” the notice read.

Ciboney’s financial year ends in May, which suggests that Finsac is hoping for a deal to emerge by November.

Assuming that the shares are taken up by a single buyer, the new owner would be required under stock market rules to make a bid for all minority shares. It explains efforts in the market on Monday to acquire the stock at prices as low as one cent and was a sign that the market expects Finsac to eventually strike a deal.

Ciboney’s only asset, land in Culloden in Westmoreland, was sold to a company called Green Forrest Limited for $250 million in December 2017. The proceeds were used to to reduce Ciboney’s debt and pay a dividend to shareholders.

Its only holdings at last report in May were cash of less than $8 million, a figure that remains subject to audit.