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Finsac puts Ciboney up for sale

Published:Wednesday | April 22, 2015 | 4:00 AM
Errol Campbell, general manager of FINSAC Limited.

Finsac Limited, which has a 72 per cent stake in inactive company Ciboney Group Limited, is making another try at exiting the investment through the sale of its shares or its landholding.

Ciboney Group was formerly invested in hotel properties, which were sold off to repay debt, leaving as its single primary asset a piece of land measuring 6.56 hectares or 16.2 acres along the south coast, which is again being advertised for sale.

Finsac said the beachfront property at Culloden in Westmoreland is located some two kilometres away from the Sandals Whitehouse resort.

General manager of Finsac and chairman of Ciboney Group, Errol Campbell, said the property was last valued at about $200 million to $250 million.

Previous attempts to sell the property at or near valuation were unsuccessful.

Ciboney's 546 million shares are currently trading at six cents each on the Jamaica Stock Exchange, valuing the company at $32.76 million.

Investors are being invited to bid for the land or takeover the entire company, but Campbell was mum on the asking price.

"We cannot provide the asking price as we are seeking offers from the general public," he said.

Previously, directors of Ciboney had indicated that 20 cents per share would be an acceptable offer.

Campbell said the land at Culloden was initially purchased for a hotel development and was still suited for that purpose. Alternatively, it could be used for villas or high-density residential development, he said.

The company, in the 1990s was heavily indebted to financial institutions which were acquired by Finsac, a state entity created to bail out troubled financial firms at the time. These properties were subsequently sold and the principal amounts owed to Finsac were paid. However, the interest is still owing.

avia.collinder@gleanerjm.com