JAM | Jul 2, 2022

Back to the drawing board again

/ Our Today

Reading Time: 2 minutes
Exterior view of the entrance to the Jamaica Stock Exchange (JSE) along Harbour Street in downtown Kingston. (Photo: JIS)

Durrant Pate/Contributor

It’s back to the drawing board again for FINSAC, after another failed attempt at offloading Jamaican shell company, Ciboney Group, which is listed on the Jamaica Stock Exchange (JSE).

The preferred buyer, which had placed a bid for the company has withdrawn the bid at the eleventh hour. Ciboney issued a news release in October last year, regarding efforts by FINSAC, the government financial sector bailout in the 1990s, to dispose of its majority shareholding in the company.

The news release indicated that the majority shareholder received equity offers and following the usual due diligence exercise, a suitable prospective purchaser was identified as the preferred bidder. As required by relevant government protocols, requisite approval was sought for the sale to this preferred bidder and this has now been received.

Bid sadly withdrawn

However, this preferred bidder has written to the majority shareholder withdrawing its offer and also advising that it has no further interest in acquiring this asset.

The company directors say they “understand further that the majority shareholder is reviewing its position and will communicate with the company in due course regarding how it proposes to move the matter forward in relation to the disposal of its shares, at which time, this information will be shared.”

FINSAC is currently weighing its options after its preferred bidder withdrew its interest in acquiring the majority interest in Ciboney. FINSAC had sold off the real estate assets of the hotel company several years ago, as part of its bailout package with the previous majority shareholders but the company continued to trade on the local stock market.


What To Read Next