Monetgo Freeport was previously listed on the Jamaica Stock Exchange but dumb politically appointed directors made a stupid decision to have the company delisted on the basis that it would save money and the assets would be sold off and the company liquidated.
Several years have so far elapsed and the company is yet to be wound up but the more than 1,600 shareholders cannot trade their shares as there is no organized market to do so, thanks to the poor decision made by former board members, but the current board don’t seem to be leading the company any better than the previous one.
The company has $327 million worth of property being held for sale so it will be some time for the winding up to take place. Amounts held on deposit for the purchase of property is $399 million, backed by funds held in escrow. The current board rather than pay more dividend from the excess cash the company holds, is recommending that no payment be made, another poor decision. The funds have not been invested for maximum returns, as they just sit in bank deposits earning under 6 percent interest per annum and now even less with fall in interest rates, being paid on deposits. That makes no sense, when there are other assets that could enhance shareholder’s value.
Freeport should be returned to the Stock Exchange with a new mandate and UDC could cash out their shares by the company buying them back.
The financial statement up to March this year, shows profit of $10.5 million down from $45 million in 2016 with income falling in 2017 to $40 million from $92 million in 2016.
The question to be answered is why would a company that is virtually inactive need to have 10 directors that is another indication of poor management. There seems no need to be more than 6 but the company needs to have management refocus their attention in a different direction than they are current on.
Appalling corporate action
October 31, 2017 by
