GOT TO BE JOKING! While there are indisputable advantages as outlaid by the venerable ladies and gentlemen involved in the recommendations of the Time For Action, we here in Barbados are beginning to see mayhem and confusion wreaked upon us by the influx of Trinidadian wealth. The major proponent seems to be those who have over the past decade or so claim to shares in Barbados.
First of all, Republic Bank does not publish its Barbados financial statement, so that we have no idea of the contribution that the savings here are making to the overall effort and hence the draw on our foreign exchange in terms of dividends. Publishing the consolidated statement in US dollars cannot be in the best social and corporate interest of Barbados.
Next there is the sale of the shares of Barbados Shipping & Trading Limited. We are hearing rumors now of the closure of the Sargeant’s Village supermarket. It services areas like Sheraton, Regency Park, Bartlett’s Tenantry, Wildey and Sargeant’s Village where people can access it on foot.
ANSA McAL must know that the terms of the facility granted by AMBEV to Banks Holdings Ltd (BHL) were in the best financial interest of the company and hence the shareholders. AMBEV sought to control its interest by the poison clause. Whether the shareholders shared the clause or not, it was made by the directors in the best financial interest of the company as events subsequently proved.
It will be hard for ANSA McAL to prove that it was a deleterious clause economically speaking. In any case, arbitration with regards to all aspects of the loan is to be undertaken in New York. ANSA McAL might only be wasting money in pursuing legal channels and also appeasing its own ego. It cannot be serious in asking shareholders to join in a civil suit against BHL.
Are shareholders unable to see that early this year they were getting $2 and change and now even the same ANSA McAL is willing to pay $7 per share?
Something is not right if people were willing to pay as little as $4 per share, but now are willing to pay much more. Now small shareholders are being asked to put BHL in court for having a company the intrinsic value of whose shares rises daily on the stock market.
You got to be joking. Are small shareholders so gullible as to participate in this charade? To please who?
Little bit from now, the going price of shares in BHL will reach $10 – the magic price – and all the infighting will be a thing of the past as AMBEV would have achieved is objective in offering such generous terms in the first place for the improvements at Newton. They would be in a position to capitalise on their shares – a $132 million bonus!
The social and political upheaval that is the norm in Trinidad is being foisted on Barbados, which as our minister has put it, “is good for Barbados” investment wise. The possession of resources does not necessarily mean that you can shout the loudest or display your muscle. ANSA McAL has raised its price to $7. Let’s see who has the deepest pocket instead of crying foul. Who knows if ANSA McAL has a long range strategy?
The Wild Coot advises all small shareholders to stand aside and watch as the battle of the bulls rage.
It does not make sense to bite the hands that will feed you by having them fight a rearguard battle in court involving something that will eat into its profits on which you depend for dividends. If you did not use your common sense in February 2013, this may be a good time to use it.
Trinidad is the genesis of our CLICO troubles. Troubles that have us in the bad books of our Eastern Caribbean neighbours. Troubles that have impoverished many a Barbadian and have enriched just a few dead and alive.
Troubles that have strained the resources of the Government and the judicial managers. Troubles that are still to be resolved.
Maybe although foreign investment in our economy is a welcomed aspect, the confusion that is a feature of Trinidad, now seems to be taking over Barbados.
One wonders if we are copying the murder rate or even the gross disrespect for the welfare and feelings of others.
• Harry Russell is a banker. Email [email protected]
