Grace Kennedy sells H&L interest

Grace HStGrace Kennedy has sold its 58.15 percent interest in Hardware & Lumber (H&L) with the shares traded over the Jamaica Stock Exchange floor today by broker – GK Capital Management in the amount of 47,013,417 shares at $18.50 each.
The shares are sold to, Argyle Industries Inc. (“Argyle”) a St. Lucian Company special purpose vehicle incorporated for the purposes of acquiring and holding the Investor’s equity interests in Hardware & Lumber. The investors in Argyle include a group of investors led by, ABBECO INVEST S.A. ( a Bahamian investment company), Sterling Asset Management along with its affiliates and associates and Greystone Equity Partners Inc. along with its affiliates and associates a release from Grace Kennedy said.
Grace Kennedy Group CEO, Don Wehby, stated “As previously indicated GraceKennedy’s decision to sell our shares in H&L was not an easy one, however, this divestment is consistent with our present strategy of concentrating on the food business locally and internationally and financial services in the region.” He added, “I feel very positive about the continued growth of H&L under the prospective new owners, Argyle, who are excited about the possibilities for the future.”

Rapid True Value owned by Hardware & Lumber an associate of Pan Jam

Rapid True Value owned by Hardware & Lumber an associate of Pan Jam

Total revenue for the nine months to September this year was $5.37 billion or 2.3 percent more than the comparative period in 2014. Profit after tax for the nine-month to September 2015 was $64 million, 43.2 percent less than the $112.9 million for the same period in 2014.
H&L comprises the Rapid True Value and the Agro Grace business. There are currently 10 Rapid True Value outlets across Jamaica, along with six Agro Grace Retail Centres. The company is headquartered at in Kingston.
The buyers will be required to make an offer to buy the remaining shares at the same price of $18.50.

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  1. […] Hardware & Lumber gets offer from the new majority shareholders Argyle Industries to buy for cash the 33,764,719 ordinary stock units not already owned by the offeror. The purchase price is J$18.50 per stock unit, the same price Grace Kennedy sold their majority holding to the company for in December last year. On December 30 Argyle Industries Inc. announced that it had acquired approximately 58.23% of the issued stock units of H&L Shares. As a result of the Offeror acquiring over 50% of the issued ordinary stock units of the Company it became obliged under the Securities Act to make the offer to the minority. The offer was received by the Hardware & Lumber board who advices, that a special subcommittee of the Audit Committee to comprise directors unconnected to Argyle or to any other significant shareholder of H&L will be appointed. This sub-committee will have a mandate to propose for adoption a recommendation as to acceptance or rejection of the Offer for inclusion in a directors’ circular to be issued by the Board containing all relevant information required for the benefit of H&L’s stockholders, in compliance with all regulatory requirements. The closing date for acceptance March 4. Hardware and Lumber reported profit after tax for the nine-months ended September 2015 of $64 million, 43.2 percent less than the $113 million for the same period in 2014 from revenues that were up 2.3 percent to $5.373 billion. […]

  2. […] with price falling 1 cent to 25 cents, Gleaner Company traded 118,100 shares to close at $2.70, Grace Kennedy fell sharply by $4.13 as 117,534 units changed hands at $80.30. Hardware and Lumber fell 50 cents […]

  3. […] with bids higher than the last selling price and 6 stocks with offers that were lower. Gains| Grace Kennedy added 4 cents with 3,715 units changing hands at $4.05, National Commercial Bank rose by 5 cents to […]

  4. […] market accounting for 886,844 units, valued at $4,712,436. Trading was swollen by the sale of Grace Kennedy’s 58.15 percent interest it held in Hardware & Lumber (H&L), with the shares traded over […]