Telecommunications company Cable & Wireless West Indies (CWWI) is quitting the insufficiently active Barbados Stock Exchange (BSE), following a proposal for the takeover of the remaining shares of Cable & Wireless (Barbados) Limited.
Cable & Wireless Barbados is a subsidiary of CWWI, which is in turn a subsidiary of Cable & Wireless Communications Limited (CWC).
CWWI, which owns 81.07 per cent of the issued and outstanding common shares of Cable & Wireless Barbados, said in a statement it was seeking to own the remainder.
Under the proposed amalgamation, shareholders will surrender their shares in Cable & Wireless Barbados in exchange for a cash payment of $2.86 for each common share. 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.
“Following the proposed transaction, Cable & Wireless Barbados intends to apply to have its common shares delisted from the Barbados Stock Exchange,” the company said in a release Tuesday.
The Board of Cable & Wireless Barbados Monday resolved to call a special meeting of its shareholders for August 24, 2017 to consider the recommended offer. Subject to receipt of the approval of two-thirds of the votes cast by the shareholders, the proposed transaction is expected to be complete on or around August 24, 2017.
“This cash offer was deemed fair from a financial point of view by an independent and well-respected accounting firm, Deloitte & Touche. Deloitte & Touche 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. As such, the Board of Cable & Wireless Barbados, including the independent board members, recommended this transaction to its shareholders,” the release stated.
The special shareholders meeting to vote on the proposed transaction has been called for August 24, 2017 at the Hilton Barbados Resort.
The company said the move was another important step in Cable & Wireless Barbados’ efforts to enhance the company’s competitive positioning to the benefit of consumers and businesses.
“The transaction will also allow the company to focus on accelerating internal improvements and efficiencies by removing certain internal barriers and reporting procedures required as a publicly listed entity,” it added.
Over the past five years a number of major companies have delisted from the BSE including Barbados Shipping and Trading Company Limited, Massy Holdings Limited, Trinidad Cement Limited, Emera (Caribbean) Incorporated, Royal Fidelity TIGRS A3 Fund as well as Royal Fidelity TIGRS A2 Fund.