Berger buyout offer extended

Berger Paints is worth more than $20 per share.

Ansa Coatings International, the major shareholder in Berger Paints Jamaica, announced an extension of their offer to acquire minority shares in the company to October 9.
No other change has been made to the offer and no reasons have been given for the extension.
It may be that the circular containing the recommendation of the directors having just been released at the end of last week would not have given enough time for some shareholders to respond to the recommendations. It is also an indication that the majority of the shareholders are not buying into the price being offered. If they were it would be expected that the extension notice would have mentioned a high level of acceptance and so encourage others to do likewise.
Berger’s minority shareholders are being offered $10.88 for each share, but the price has been consistently above this price for most of 2017 while the value based on earnings and market valuation being in the $20 range.

Berger to have new owner

Berger Paints Jamaica along with the Berger Paints in Trinidad and Tobago and Barbados will have new owners, later this year as Ansa Coatings International (ACIL), a subsidiary of the sprawling Trinidad and Tobago conglomerate, ANSA McAL Group entered into an agreement with Berger International Private Limited to acquire Lewis Berger (Overseas Holding) Limited.
Lewis Berger (Overseas Holding) owns 51% of the issued share capital in Berger Paints Jamaica. Berger Paints Trinidad and Tobago is 70 percent owned by its parent Lewis Berger and is listed on the Trinidad and Tobago Stock Exchange and last traded on June 12, at TT$4.05, but trades infrequently. Berger Paints Barbados Limited is owned fully by the parent company.
The combined Berger Caribbean business net sales is put at US$35 million, a statement by Ansa McAl states. The completion of the transaction is subject to conditions set out in the agreement between BIPL and ACIL. ANSA Coatings and its subsidiary, produces, market and distributes coatings in the categories of decorative and architectural, wood finishes, automotive, light and heavy duty industrial and marine under the following brands: Penta, Sissons, Glidden, Nexa Autocolor, Aquabase Line, Devoe and International.
Group Chairman and Chief Executive of the ANSA McAL Group, A. Norman Sabga noted that the acquisition will further enhance the Group’s position in the Caribbean architectural coatings market. “Berger is best known for its well-positioned paint brands throughout the region. The architectural coatings industry has enjoyed a period of healthy innovation over the last decade.

Carib Beer brewed in Trinidad by Ansa McAl Group

Through this acquisition, we hope to address an expanded customer base with a broader suite of product offerings and superior levels of customer service and support”, Sabga concluded.

At this stage it is unclear exactly how the new owners when the deal is concluded will move forward with the expanded paint group. The acquisition has far reaching ramification for ANSA Coatings. This means that products imported into Jamaica from Trinidad can be produced in the plant in Jamaica while the two plants in Trinidad can be merged into one, both actions would result in significant savings and improved profit margins. The Barbados could be served by exports out of Trinidad.
ANSA McAL is a diversified Public Conglomerate, listed on the Trinidad and Tobago Stock Exchange, with subsidiaries in Trinidad and Tobago, Barbados, St. Kitts and Nevis, Guyana, Grenada and the USA and involved in the manufacturing, brewing, insurance, finance, real estate, media, shipping, trading/distribution and automotive and industrial equipment retailing sectors.