The Dolphin Discovery Group of Mexico acquired approximately 58.5 percent of the ordinary share capital of Dolphin Cove, paying between J$13.70 (or US$0.1143) to a high of J$16.03 per share. The shares were sold to the public in an initial public offer of $3 each, in November 2010 and at the peak resulted in a gain 434 percent.“The majority of the shares were purchased from the holdings of Stafford Burrowes, the founder and principal shareholder of Dolphin Cove,” stated a late night release obtained by IC Insider.
Dolphin Cove has total outstanding shares totaling 392.4 million. Burrowes and persons connected with him will continue to own in excess of 10 per cent of the company.
Eduardo Albor, the chief executive officer of the Dolphin Discovery Group in commenting on the transaction said: “ Burrowes and the Dolphin Cove team have built a world class attraction in Jamaica and I am delighted that he has chosen to partner with the Dolphin Discovery Group to take the venture forward.”
Albor added that the company does not plan to delist the stock from the Stock Exchange but will nevertheless comply with the rule of the Jamaica Stocks Exchange to make a compulsory offer for the minority shares.
Stafford Burrowes will remain as chairman of the Company and it is anticipated that a number of the current directors will resign to make way for additional directors to be appointed by the Dolphin Discovery Group. In keeping with this, the company announced the following changes to the board that flowed from a board meeting of Wednesday, November 18, the resignation of Gregory Burrowes, Marilyn Burrowes, Richard Downer and R. Danvers Williams who tendered their resignations while Eduardo Albor Villanueva, Concepcion Esteban, Gibran Chapur and Travis Burke were appointed as directors.
Stafford Burrowes said: “I am familiar with and have great respect for the operations of Dolphin Discovery in Latin America and the Caribbean, and now in the US and Europe. Dolphin Discovery, like Dolphin Cove, has a very professional approach to the care of dolphins and other species and that encouraged us to do this partnership with them. It gives me great pleasure to know that Dolphin Cove will be part of such a large and successful group of companies. I intend to remain with Dolphin Cove as chairman and look forward to combining my knowledge and expertise with those brought to the table by Dolphin Discovery. I am sure that together we can continue the growth of Dolphin Cove in Jamaica and the Caribbean.”
Burrowes added: ” It is my understanding that as a result of the sale of some of my shares, Dolphin Discovery is required to make a mandatory offer to all shareholders. Regardless of the outcome of the mandatory offer, I intend to remain a significant shareholder of Dolphin Cove and in that capacity I hope to share in the benefits resulting to the Company from its association with the Dolphin Discovery Group.”
Dolphin Cove Jamaica founded 15 years ago by Mr. and Mrs Burrowes in Jamaica offers dolphin attractions across the island and the region.
Dolphin Cove reported a 4 percent increase in profit after tax for the nine months to September, of $412 million over 2014 and a 17 percent increase in the September quarter to $128 million over the similar quarter last year. Cash flow from operations increased by 26 percent to $486 million, compared to $385 million for the similar period to September 2014.
Earnings per stock unit for the nine months amounts to $1.05 and 32.6 cents for the quarter and could end around $1.40 for the year, for the full 2014 year, earnings was $1.12.