BANKS HOLDINGS LIMITED (BHL) gained significantly from a now controversial agreement it signed in 2010 with Latin Capital Fund (LCF), now SLU Beverages Ltd, says the chairman of BHL.
The agreement contained a clause that would stick BHL with the $132.50 million payment if any person or company, other than SLU’s parent company AmBev, gained control of 25 per cent or more of the company’s stock. That payment would represent the repurchase of 20 per cent of BHL’s shares which LCF converted as part of the $56 million loan it gave to BHL to build a modern plant at Newton, Christ Church.
But yesterday Anthony King said that the conglomerate would send a very bad signal if it tried to wiggle out of a deal from which it had benefited. (GE)
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