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Cargo Handlers revises Bulk Liquid deal

Published:Wednesday | October 1, 2014 | 12:00 AM
File Mark Hart, CEO of Cargo Handlers Limited.

The Hart-controlled port company, Cargo Handlers Limited (CHL), has pulled back from full acquisition of Bulk Liquid Carriers Petroleum Transport Limited, saying the transaction will be restricted instead to purchasing its company's assets at this time.

CHL announced in Decem-ber 2013 that it had finalised a deal to acquire full owner-ship of Bulk Liquid Carriers and was to take control of the operations on January 1, 2014.

However, in a market filing on Monday, CHL said that upon further due diligence of Bulk Liquid Carriers, the board determined that Cargo Handlers would limit the transaction to acquisition of the assets of the company. Both companies are based in Montego Bay.

"CHL will manage the assets and continue to evaluate the option to purchase the company in the future," said CHL's filing to the Jamaica Stock Exchange.

Cargo Handlers now estimates that the purchase of Bulk Liquid's assets will result in additional revenue of $15 million per year; its initial estimate under the initial agreement was $150 million of added revenue. The company is in the business of handling bulk and containerised cargo, specialising mostly in cement, steel and lumber.

Chief executive officer of CHL, Mark Hart, was said to be travelling and was not reached for comment, while director Jane Fray declined comment.