Advocate (original) (raw)

No major changes on cards for WIBISCO
Web Posted - Tue May 15 2007
By Marita Greenidge

Bermudez Group Ltd. has no intentions of making any significant changes at The West India Biscuit Company Ltd. (WIBISCO) after any further acquisition of shares.

The company made this clear in its take-over bid which is currently being distributed to the remaining shareholders of WIBISCO.

The Offeror (Bermudez) recognises the important role and historical contribution of the offeree company (WIBISCO) in the manufacturing and wholesaling of baked products in Barbados, and intends to continue the successful practices, good corporate citizenship and customer oriented philosophy which have established the offeree company as a leader in the domestic market, said the Bermudez in its offer and take-over bid circular.

Bermudez now has a 48.3 per cent stake in WIBISCO, and under the Companies Act of Barbados, is required to make an offer to all remaining shareholders of the locally operated biscuit company. If it acquires 90 per cent or more of the shares, it plans to compulsorily acquire all the remaining shares, and subsequently de-list WIBISCO from the Barbados Stock Exchange (BSE). Directors of WIBISCO have indicated their intention to decline the offer, and have represented this position to the Board. The offer being made is BDS$8.20 per share to Barbadian residents or US$4.10 to non-residents.

Prior to acquiring 48.3 per cent of the shares in WIBISCO, Bermudez held a 29.7 per cent stake, a position reached in 1996. At that time, the company entered into a management contract to assist with the strategic management of WIBISCO. This contract offered technical, marketing and management oversight, as well as a sales arrangement whereby Bermudez acted as a sales agent for WIBISCO products into various regional and international markets. The contract had no expiration date, and WIBISCO was required to pay a management fee of 0.05 per cent of sales.

According to Bermudez, WIBISCO will continue to be managed by the current local management team under the leadership of a corporate regional executive team, which will oversee the implementation of a regional strategy and business plan.

The Offeror intends that the rights of all employees of the Offeree company will be fully safeguarded. There is no intention to make any changes to the existing arrangements in relation to staff, as may arise in the ordinary course of business, Bermudez said.

The 84-year-old Trinidadian company also indicated it had no intentions to liquidate, sell or lease WIBISCO, neither does it intend to merge WIBISCO with another entity.

WIBISCO shareholders have until June 6 to accept Bermudezs offer.