Wednesday, April 24, 2024

Shares tied up

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THE DIRECTORS OF BANKS Holdings Limited (BHL) have dropped a bombshell that could rock any attempts by Trinidadian company ANSA McAL to gain control of the local beer company.

Board chairman Anthony King and director Chris deCaires revealed yesterday in a circular to shareholders that  an airtight agreement between South American company, Latin Capital Fund (LCF), which financed Banks Brewery’s new $56 million Newton, Christ Church plant might have become  a $132.50 million albatross around BHL’s neck.

LCF’s 2010 agreement with BHL not only limited BHL from issuing any  new shares without LCF’s permission, it also gave LCF the right to convert part of the BHL debt into shares. And LCF quickly utilised that option, converting a portion into  a 20 per cent shareholding in BHL in 2010. Those shares it then vested  in SLU Beverages,  a company it registered  in St Lucia.

In September,  Brazil-based global beer giant AmBev bought  SLU and announced  its takeover plan for  BHL days later.

Please read the full story in today’s Weekend Nation, or in the eNATION edition.

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