Jamaica Observer / CWC Cala Limited, owners of Cable & Wireless Jamaica (CWJ), has advised that its cash offer for the purchase of 3,027,138,546 ordinary stock units in Cable & Wireless Jamaica Limited has been extended to Wednesday, February 28, 2018 at 4:30 pm. The terms and conditions of the cash offer, which were contained in an offer circular dated December, 28 2017, gave minority shareholders the opportunity to sell their shares at a premium price of $1.45 per share.
Currently CWC Cala and its affiliate own 82 per cent of the ordinary shares in CWJ, with the remaining 18 per cent held by an estimated 25,000 shareholders living in Jamaica, the region and the diaspora.
Upon completion of the cash offer, CWC Cala Ltd intends to delist CWJ from the Jamaica Stock Exchange (JSE). Once this happens, minority shareholders will no longer be able to trade their shares on the JSE and will be liable to pay transfer taxes and stamp duties on the transfer of their shares, according to a recent news release.
“The current cash value of $1.45 per share being offered represents a premium of 40 per cent over the five-day volume weighted average closing price (“VWAP”) prior to the opening of the offer, and a 35 per cent premium over the six-month volume weighted average price (“VWAP”) prior to the opening date of the offer,” the release stated.
To accept the offer, shareholders should submit the following documents, as outlined in the offer circular, to PwC Corporate Services, Scotiabank Centre, Corner Duke & Port Royal Streets, Kingston, or their stockbroker: • completed acceptance form • a valid copy of identification of all shareholders on the account, together with the share certificates, or an executed indemnity form for any share certificate that has been lost or destroyed: or — in the case of shares deposited with the Jamaica Central Securities Depository (JCSD) — a copy of the shareholder’s statement, or other written deposit receipts, or confirmation issued by the JCSD, or other document(s) of title.
CWC Cala is incorporated under the laws of Barbados and is a wholly owned indirect subsidiary of Cable & Wireless Communications Limited (formerly plc). Cable & Wireless Communications Limited (formerly plc) is a wholly owned indirect subsidiary of Liberty Global Plc.
The last traded price for CWC shares, according to the JSE web page, was $1.32. About a year ago the stock traded at a high of $1.20.