NCB Global Holdings has been given the green light to acquire the majority shareholding in Guardian Holdings Limited (GHL). The company notified investors and the GHL directors in a notice posted on the Jamaica Stock Exchange’s website yesterday. Furthermore, the notice was placed on the Trinidad and Tobago Stock Exchange’s website. NCB Global Holdings is a wholly owned subsidiary of the NCB Financial Group.
There was an overwhelming response to the offer. As a matter of fact, shares deposited by current shareholders of GHL sat at approximately 118,517,936 shares. NCB had made an offer for 74,230,170 shares. According to the notice, all terms and conditions of the Offerer had been complied with or waived as at May 02, 2019. Therefore, and this is the exciting part, NCB Global Holdings has been cleared to take up the shares.
In other words, the response is equivalent to an over subscription. NCB Global Holdings will now take steps to verify the validity of the shareholdings deposited and move to close the deal.
However, the number of shares deposited (offered to NCB to buy) exceeded the number NCB was offering to buy. As such, the shares will be taken up on a pro rata basis according to the number of shares deposited by each shareholder. Consequently, this means is that NCB Global Holdings will accept a proportional amount of the shares deposited by each shareholder. This will allow each shareholder to “sell” some of their holdings and keep the rest that are not taken up.
New Closing Date
Unfortunately, NCB had to extend the closing date once more. The extended closing date has now been set to May 13, 2019. Subsequently, the company expects that the shares will be taken up and paid for by within 10 days of the closing date. NCB is expected to pay $US 207, 103, 192.50 to Guardian Holdings Limited shareholders for the shares deposited.
Guardian Holdings Limited stock last traded on the TTSE for $TT 18.50 or $US 2.72. NCB offered $US 2.79 per share in its first announcement of the take over bid.
The lead broker of the offer is Republic Securities Limited.