THE SALE OF more than $39 million worth of Sagicor shares to the National Insurance Board a year ago is again heading to the law courts.
This time, the West India Biscuit Company (WIBISCO), which has almost three million shares in the insurance company, is seeking o get the Securities Commission, by order of the court, to instruct the Stock Exchange to investigate the transaction.
The application was filed in November through WIBISCO’s lawyers Lex Caribbean, headed by Garth Patterson, QC.
In it, the biscuit-maker argues that the deal was not subject to the scrutiny of the two regulatory bodies, even though lawyers for respondents were contending that there was full approval of the Securities Commission and that the Stock Exchange did not contravene any provisions of the Securities Act.
WIBISCO, however, is insisting that the Sagicor shares were sold below market value ($3.50 per share) for $3.325 each and that the transaction provided a $2 million saving to the NIB.
It also argues that the offer was not put to other Sagicor shareholders and has had the effect of diluting their value by approximately four per cent.
Further, WIBISCO charges that with the deal having gone through, the price of Sagicor shares has plummeted and the market for such shares has virtually dried up.
A date is to be set for a hearing.
