Ansa McAl's corporate headquarters in Port-of-Spain, Trinidad, as seen on the company's website. - File
Linda Hutchinson-Jafar, Business Writer
Barbados Shipping and Trading Company (BS&T) was expected to decide today in Bridgetown on a proposed merger with Neal and Massy Holdings Limited, but may be forced to delay what was expected to be an endorsement of the deal following a hostile bid for the company by Ansa McAl group of companies.
Ansa McAl announced its unsolicited bid in a one-paragraph statement issued by corporate secretary, W. Keith Welch, but said the formal offer would be made July 15.
Overwhelming support
On Monday, Trinidad-based Neal & Massy received overwhelming support from its shareholders for all three resolutions with respect to the proposed merger with BS&T.
"Support was given despite the fact that there were concerns articulated by some shareholders regarding the past performance of BS&T," said a statement from Neal and Massy.
"This positive action taken by Neal & Massy's shareholders is a demonstration of their unquestionable acceptance of the merger, as the mechanism to create one of the largest and most diversified, indigenous corporations in the region."
The merger would have created the largest conglomerate in the region, with combined revenues of US$1 billion. But last Friday, in a surprise move, Ansa McAl, another Trinidad-based company, said it would make a cash offer of B$7.00 per share for BS&T, a near $1.50 premium on the B$5.51 per share at which the stock last traded.
"The full details of the offer are being prepared within the framework of the pertinent legislation and the rules of the Securities Commissions of Barbados and Trinidad and Tobago," said Ansa McAl in a statement.
"The details of the offer will be communicated to the shareholders in due course according to the appropriate protocols."
The company said acquisition of the shipping company would create "an enterprise with the scale and capability" to compete globally, and David Inglefield, president and chief executive officer of Ansa McAl (Barbados) Limited described the offer as being good for BS&T shareholders and for Barbados.
It is not the first time that Ansa McAl is involved in a hostile takeover bid in Barbados.
Three years ago, the company successfully grabbed another Barbados company A.S Brydens & Sons. Inglefield said Brydens Distribution, A & R Tempro and Brydens Insurance "have maintained their identity, management structure and have grown from strength to strength" since the 2004 acquisition.
But Neal and Massy's chairman, Arthur Lok Jack said that while Ansa McAl's offer might look good in the short term, BS&T's shareholders had to consider whether to take the money now, or be part of an organisation that had been growing by 17 per cent per year in recent times.
Lok Jack said while Neal and Massy was seeking to merge with BS&T — which would see shareholders having 100 per cent interest in both companies — he said a takeover would likely put controlling interest in the hands of the buyer.
"Who will pay the price for the higher offer?" Lok Jack asked. "The retrenched worker," he said.
Analysts have favoured the merger, but those recommendations were issued ahead of the hostile bid.
Ansa McAl has a strong presence in Barbados through its involvement in a number of sectors including automotives, distribution, services and finance.
If Ansa McAl took over BS&T it would also control Barbados' leading food distributors, as its companies include Stokes and Bynoe and Brydens Distribution.
Should the proposed merger get the required approvals, the combined enterprise which will be known as the Neal and Massy, BS&T Group Limited will be registered and headquartered in Port of Spain and will continue to trade shares on both the Trinidad and Tobago and the Barbados Stock Exchanges.
It would employ approximately 9,000 people and have some 10,000 shareholders throughout the region.
Neal and Massey Holdings
Asset Base US$550 million
Revenues US$672 million
Asset base US$296 million
Revenues US$367.95 million.
ANSA McAL
Revenues TT$4.13 billion
Total Assets: TT$8.02 billion
US$1=TT$6.25
