Shares being acquired for its Employee Stock Ownership Plan

Durrant Pate/Contributor

Investment and brokerage firm Barita is buying back on the open market upwards of 10 million shares  worth J$850 million at current market value.

The purchase of the shares is for Barita’s Employee Stock Ownership Plan (ESOP). The plan is to have these shares purchased from the open market between September 6, 2022 and October 14, 2022.

At yesterday’s trading, Barita’s share price closed at J$84.98, having lost J$0.02 with 6,649 shares exchanging hands. In September 2021, Barita established its ESOP with a view to retain and attract staff, create inter-generational wealth for its very hard-working team members and their families.

This is in addition to improving the lives of ordinary Jamaicans who work with the company and its affiliates. Under the terms of the Plan, eligible employees have been given the opportunity to purchase Barita shares at a discount from time to time in accordance with the rules of the Plan and the Trust Deed which governs the employee share trust in which the shares will be held.

ESOP 1st tranche substantially allotted

The first tranche of shares purchased in 2021 have been substantially allotted to team members, who have become owners of the business and will benefit from future dividend income and capital appreciation.

However, especially in the current environment of high inflation and high interest rates, Barita is of the belief that there is a need to continue facilitating wealth creation for team members and their families, not only through competitive compensation but also through stock ownership.

As such, initiatives such as this one of buying back shares on the open market  will continue to redound to the benefit of all employees, shareholders, and stakeholders as staff have continued their outstanding output in delivering on the company’s strategic objectives.

Last October, Barita purchased 10 million shares, which at current market price of $100.49 per share are worth just over $1 billion. The acquisition of the shares was, however, conducted at a price of $101.97.

It will facilitate the grant of share options to Barita’s team members. The 100 million shares were purchased on September 30, 2021 — nine days after its second successful additional public offer of shares in which it raked in J$10.78 billion in subscriptions.