While listening to the talk show on Sunday it was stated that the government has indicated it will not be selling its NIS shares in BL&P. Is this a fact? Minister Benn seemed uncertain when quizzed about it.

David unless it come from the pm mouth I think we should just take it as a minister opinion which can change based on how the pm feels on the issue.

Apparently Banks Holdings Limited entered into a Convertible Debt Purchase Agreement with Latin Capital Fund I, L.P. and SLU Beverages, Ltd. (the Lenders) to finance the acquisition, installation and commissioning of a new Brewery at Newton in Christ Church. Apparently a condition of this Agreement is that no further shares in Banks Holdings Limited be issued except with the written consent of the Lenders. Banks Holdings Limited has now called a Special Meeting of the shareholders to have that provision approved. Apparently, part of the debt under the Agreement has already been converted into 13,250,000 common shares of Banks Holdings Limited. Apparently, the Directors did not see it fit to approach the existing shareholders, through a rights issue, for the financing. In my opinion, when this is viewed with the current recommendation from the Light & Power Holdings’ Directors to sell at approximately $8 below fair value, the Directors of Barbadian companies need to do a much better job.

Apparently, part of the debt under the Agreement has already been converted into 13,250,000 common shares of Banks Holdings Limited. Apparently, the Directors did not see it fit to approach the existing shareholders, through a rights issue, for the financing.

Here in lies why i think the stock market makes no sense. They don’t even wish to give the shareholder of the companies any rights or ask them how they think it should be governed. A new share issue as a capital injection to a company is far cheaper than borrowing money anyday as there is no defined repayment date and therefore doesn’t put any strain on the cash flow of said company.

Where do we go with the BL&P shares now?

Barbadians were told that a few BL&P shareholders approached Emera earlier. Who are these shareholders? What motivated them to approach Em era?

By the Leucadia National Corporation are the out front obvious candidates for approaching anybody … but …

David

The easiest way to get answers is to purchase shares in the Company of choice and sing away at their Annual General Meetings. Of course you may have difficulty in having your questions placed on the Agenda but you won’t know until you have tried. If that fails I can point you to an agitator who now spends a considerable amount of time in Barbados (and is an instant expert on Barbados) but is well known for disrupting AGMs with his numerous questions up in the Cold North.

My understanding is that no one entity currently controls Sagicor Financial Corporation. If and when a move is made to gain control, what quality of representation can the shareholders really expect from the Board of Directors? Recent events suggest mediocre:
– Recent sale of Sagicor shares to one entity rather than a rights offering to existing shareholders
– Recent convertible debt financing secured by Banks Holdings Limited rather than a rights offering to existing shareholders
– Recent move to have Barbados Dairy Industries Limited delisted, while shares are still held by minority shareholders
– Recent recommendation to shareholders to sell Light & Power Holdings shares below the assessed fair value
– Possibly other instances as well

Are the CEOs and Directors of our major Corporations mediocre at best, able to be tough with only the employees and their unions?

Why do Barbadians prefer to place their money on bank accounts for less than 2% interest?