Acquisition made through successful APO

Stockbroking and investment firm, Barita Investments, is advising that it now owns 20 per cent of distribution company, Derrimon Trading Limited (DTL).

This minority stake acquisition sees Derrimon becoming an associate company of Barita Investments Limited. The 20 per cent shareholding was purchased during Derrimon’s recent additional public offer (APO) of shares, where it sold just 1.8 billion shares, thus taking in over $4 billion in proceeds last month.

In a statement today, commenting on the investment, Jason Chambers, director of Barita Investments and chief investment officer of Barita’s parent company, Cornerstone Financial Holdings, said: “The Board of Directors of Barita and the leadership team of Cornerstone are very satisfied with this investment as Derrimon embodies several of the characteristics we typically look for in assessing investment opportunities.”

Chambers added: “DTL has built up an enviable track record of growth and value creation, and the management has demonstrated their ability to achieve scale, both organically and through the successful integration of several accretive acquisitions.”

He pointed out that Barita has, over the course of at least the last two years, established significant capacity to expand its portfolio of investments into sectors that are viable alternatives to traditional ones that are now fully priced in its view.

Diversification factor of the investment

According to Chambers: “This minority acquisition should be seen as a by-product of our increased investing capacity as we prudently seek to unearth both value and growth-oriented investment opportunities within the context of the current global investment landscape.”

Chambers pointed to the diversification factor that this investment adds to Barita’s portfolio, as it provides exposure to the real sector via a company which has recently begun an international expansion.

“At Cornerstone and Barita, our goal is to positively impact the lives of our stakeholders through the tireless pursuit of opportunities that provide solid risk-adjusted returns throughout their investment horizons. We believe this investment is aligned with that ethos and we look forward to collaborating with the team at DTL to the mutual benefit of our collective stakeholder groups” he remarked.

For her part, Paula Barclay, CEO of Barita, was also excited by the investment in Derrimon.

“At Barita, we continuously seek out unique strategic opportunities to build shareholder value while balancing the interests of our clients, team members, and other key stakeholders. We are confident that our association with a company like Derrimon will only contribute positively to our overall future performance,” she said.

Team effort consummating the investment

He emphasised that consummating this investment took significant effort from the team at Barita and took the opportunity to extend her gratitude to them for their hard work. Barita Investments has the distinction of being the oldest stockbrokerage in Jamaica, founded by Rita Humphries-Lewin in 1977.

The company is a securities dealer regulated by the Financial Services Commission and is also a primary dealer and Cambio licensed and regulated by the Bank of Jamaica. The company currently operates as a full-service investment bank offering asset management, stock, and fixed income brokerage, wealth advisory, investment banking, and foreign exchange trading solutions to its clients.

Derrimon Trading is a distributor of dry and frozen bulk commodities. It also operates a retail division through its seven Sampars Cash ‘N’ Carry locations.

Derrimon operates Select Grocers Supermarket located in Upper Manor Park Plaza in St Andrew pursuant to a joint venture agreement which gives it a 60 per cent ownership interest in the operations.

Derrimon also owns approximately 62.02 per cent of Caribbean Flavours and Fragrances and owns 100 per cent of Woodcats International Limited, which manufactures and distributes wooden pallets and other by-products. Woodcats also distributes plastic pallets.