Barbados Securities Commission and the Barbados Stock Exchange approve Emera’s offer made to Shareholders of Light & Power Holdings Ltd. – Radio Talk Show Commentator urges Caution and avoid possible Overseas Regional Monopolies

Emera also owns 19% of St. Lucia Electricity Services Limited, which serves more than 50,000 customers on the Caribbean island of St. Lucia, 25% of Grand Bahama Power Company which serves 19,000 customers on the Caribbean island of Grand Bahama and 38% of Light & Power Holdings, which serves 120,000 customers on the Caribbean island of Barbados through its regulated electric utility, The Barbados Light and Power Company.

Emera Inc. (“Emera” – Toronto Stock Exchange listing EMA“) wishes to advise all shareholders of Light & Power Holdings Ltd. (“Light & Power Holdings” – Barbados Stock Exchange listing: LPH“) that the offer to purchase all issued and outstanding common shares in Light & Power Holdings at a cash price per share of BB$25.70 (twenty five Barbados dollars and seventy Barbados cents) has been approved by the Barbados Securities Commission and the Barbados Stock Exchange.

Speaking recently at the George Street Auditorium, Radio Talk-show Moderator Tony Marshall thinks Barbadians may jump too fast at the prospect of easy money and ignore the larger picture {CLICK ON FOLLOWING LINK FOR FULL AUDIO};-

Mr Marshall observed Emera also has shares in the Bahamas and over in St Lucia and perhaps Barbadians should look at Emera from a security risk in terms of Monopolies rather than a quick method of restoring accounts to former glory.

The offer is open from 20 December, 2010 and closes 35 days later on 24 January, 2011. The Offer and Circular will be sent to all Light & Power Holdings shareholders not less than 28 days prior to the close of the Offer.

Panel from L/R: Chartered Accountant Peter Carter, Starcom Network's Tony Marshall (ex-Barclays Bank) & BCCI President Andy Armstrong

At the current U.S. dollar to Barbados dollar exchange rate, this offer is the same as the price Emera paid to Leucadia National Corporation when it acquired 38% of Light & Power Holdings in May 2010.

Mr Marshall emphasised one needs to look at the bid as 13 USD and not 25 BBD, he also pointed out when Light & Power wanted to spend money on new equipment, what they did to get the required funding {CLICK ON FOLLOWING LINK FOR FULL AUDIO};-

The popular Starcom Moderator indicated when BLPC spent 1 billion in Capital Expenditure the fund-raising was not via any venture capital initiatives but simply using the funds raised via recent raises made to compensate for new equipment spending.

Light & Power Holdings is the parent company of The Barbados Light & Power Company Limited (“BLPC“). BLPC is the sole electric utility operator on the island of Barbados, serving 120,000 customers. BLPC has three power generation stations consisting of 239 MW of installed capacity. TeleBarbados, an alternative Internet service for Barbados, is also a subsidiary of LPH and any proposed sale to Emera has not been disclosed as to what impact this would have on Barbados’ current internet service.

In the final analysis, the radio commentator doubts LPH or BLPC will be overly concerned once profits remain at certain standards {CLICK ON FOLLOWING LINK FOR FULL AUDIO};-

Marshall suggest that a ruling from the Fair Trading Commission with BLPC meets with the Utility’s approval: the fact they can demand a Return on Equity

2 Responses

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  1. I do not agree with the sentiment that Barbadians may jump too fast at the prospect of easy money and ignore the larger picture. This is what investing is all about. If there are vital or strategic industries or entities to be protected from foreign control, the onus is on the Government to pass the necessary legislation or block the sale. Canada is well known for this.

  2. Some other outstanding business matters:

    A meeting of the shareholders of Barbados Dairy Industries Limited was called for May 27, 2010, to consider the delisting of its shares from the Barbados Stock Exchange. My understanding is that the resolution was passed. (I believe that delisting would be disadvantageous for the holders of small amounts of shares, as the market for trading in those shares would cease.) However, the Company continues to be listed on the Barbados Stock Exchange. Shareholders need to know the status of the delisting and whether Banks Holdings Limited, as the major shareholder with more than 80% of the shares, will consider acquiring the remainder of the shares, as the delisting could not be approved without the agreement of Banks Holdings Limited. Mr. Richard Cozier of Banks Holdings Limited should speak to this.

    You may recall that soon after the legal issues relating to the acquisition of Barbados Shipping & Trading by Neal & Massy were resolved, the Securities Commission issued a statement to the effect that Neal & Massy had agreed to extend the offer to the remaining shareholders (now holding less than 3%) of Barbados Shipping & Trading. My understanding is that the offer has not yet been communicated to the remaining shareholders. The appropriate spokespersons need to speak to this so that the minority shareholders know the status.

    Uncertainties such as these result in low or no trading in the underlying security.


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