No nod for new Banks shares

The Securities Commission of Barbados has not approved registration of a new issue of shares for Banks Holdings Ltd (BHL).  The commission issued a statement on the matter yesterday as debate continued on BHL’s plans to finance its $50 million new brewery at Newton, Christ Church.“Contrary to media reports The Securities Commission of Barbados announces that to date it has not approved registration of a new issue of shares pursuant to a convertible loan option for Banks Holdings Ltd.”BHL said it was considering low-cost loan arrangement with an unnamed investor to avoid steep debt servicing.Under the proposed deal BHL will get US$28 million in cash and in return the financier will have the option to convert any or all of the debt into shares in BHL at BDS$4 per share.However, this has not gone down well with Doug Skeete, president of the Barbados Association of Corporate Shareholders, who criticised BHL for the way it dealt with small shareholders on this issue.