The directors of Banks Holdings Limited (BHL) have recommended that shareholders accept the latest offer from ANSA McAL of Bds$7 to takeover the Barbados beverage manufacturer.
In a circular this week, the directors said the offer from the T&T conglomerate, made through its subsidiary, AM Caribbean Development Ventures Limited (AMC), is “notably higher” than the offer from SLU Beverages, a subsidiary of Brazilian beverages giant Ambev, which is also trying to get control of BHL. SLU’s current offer is Bds$6.20 per share.
The directors said AMC’s amended offer is 25 per cent above the top of the range of the fair market value for BHL’s shares. They said “notwithstanding the competitive bidding environment that may facilitate higher offers”, the AMC offer is beneficial to shareholders from a financial perspective.
The closing date for AMC’s amended offer is December 28, while the close of the SLU offer is set for December 3.
The BHL directors said SLU could increase its offer in response to the AMC amended offer—the earliest date on which an increased offer from SLI could close would be December 17, 11 days earlier than the amended AMC offer.
In mid-October ANSA McAL 8,446,546 common shares in BWPL Holdings Limited, the second largest shareholder in BHL. The group also owns nearly 15,000 shares through its wholly-owned subsidiary ANSA McAL (Barbados) Limited.
Ambev, through its subsidiary SLU Beverages, owns just over 40 per cent of BHL.
BHL owns Banks (Barbados) Breweries Limited, Barbados Bottling Company Limited and Barbados Dairy Industries Limited. Its range of beverages includes leading international brands produced under licence such as Coca-Cola, Sprite and Guinness and originals like Frutee, Tiger Malt, Pinehill juices and milks and Banks Beer.
Acquisition of the company will give ANSA McAL control of every major beer brand produced in the English-speaking Caribbean, adding to a portfolio that includes Carib, Stag, Mackeson and Red Stripe.