Seprod gunning for 80% of AS Bryden


Seprod, the Jamaican conglomerate, announced an offer to acquire up to 447,491,012 ordinary shares of its subsidiary A.S. Bryden & Sons, representing 29.85 percent of the 1.4992 billion issued ASBH’s outstanding shares. 

Some of Seprod”s products.

The offer will be satisfied by the issue of 396.43 Seprod shares for each 1,000 ordinary shares of ASB. The offer will expire on June 5, unless it is extended.
According to the latest public notice of the company, Seprod currently holds 751.66 million shares, the acquisition would take them to 1.2 billion or 80 percent of the outstanding shares, enough to keep them listed on the Jamaica Stock Exchange on the surface of it.
Connected parties to Seprod own around 300 million shares, these include Musson Investments with 144 million shares and Stony Hill Capital with 114 million units. Richard Pandohie, CEO of Seprod owns 65.8 million shares. It would appear that the offer is an exercise, primarily to roll all these holdings into Seprod and simplify the accounting for the investments.

At the close of trading on the AS Bryden shares closed at 33 and Seprod at $81.05, the equivalent of 2.456 Bryden shares for each Seprod share. Shareholders of Bryden will be getting shares in a more dynamic company with greater growth prospects than in the stand alone Bryden.

Eppley seeking up $350m

Nigel Clarke - Chairman of Eppley

Nigel Clarke – Chairman of Eppley

Eppley plans to issue between 41,666,667 and 58,333,334 –Preference Shares to the public at $6 each, and maturing on 30 November 2019. The company reserves the right to take up additional amounts not exceeding $350 million, in the event that the subscriptions exceeds $250 million.
Dividends will be paid monthly at the rate of 10% per annum for the first two years, 11% per annum for years 3 to 4 and 11.5% per annum for the final year. This issue will be the second preference share to be offered to the market, since last year by the company.
The Invitation will open at 9 am on the Opening Date, Tuesday 11 November 2014 and will close at 4 pm on the Closing Date, Tuesday 18 November 2014 subject to the right of the Company to: (a) close the Invitation at any time after it opens once applications for all Preference Shares in the Invitation are received; and (b) extend the Closing Date for any reason, provided that it does not extend beyond the expiration of 40 days after the publication of this Prospectus
The Company reserves the right to redeem the Preference Shares (in full or part) on any dividend payment date that is not less than three years from the issue date at the higher of: (a) the Invitation Price plus 1 percent; or (b) the average of the last 10 days’ closing market prices on the JSE, prior to the notification date, plus any accrued and unpaid dividends subject to 30 days notice.
Eppley’s directors stated in the prospectus that “since the company’s initial public offering, of ordinary shares in July 2013, the company invested over $600,000,000 in the expansion of its credit business. The Company has deployed most of the capital it raised in its 2018 Preference Share issue in November 2013.”
Eppley provides credit to clients, allowing policyholders to finance insurance premium payments for property and motor vehicles. It also provide lease and commercial loan financing to medium and large businesses.
The ordinary shares are held mainly by Musson Investments – 37.68 percent, General Accident – 9.17 percent, ATL Pension – 25.65 percent and Stony Hill Capital – 15.28 percent.
Jamaica money Market Brokers are the brokers to the issue.
For the six months to June profit of $30 million was achieved from revenues of $74 million. At the end of June the company’s equity is $336 million with debt capital of $428 million. The proposed offer will raise debt to at least $678 million putting the leveraging at a high level. It seems as if the company needs a dose of ordinary equity as well as debt funding.