Barbados Nation News, Jun 16, 2010 - WIBISCO suing Sagicor, NIB

WEST INDIA BISCUIT Company Limited (WIBISCO) has slapped Sagicor Financial Corporation and the National Insurance Board with a civil suit over the sale of Sagicor’s shares to the NIB in a private placement last December.
According to the claim form filed in the Supreme Court last Monday, WIBISCO is seeking, inter alia, a declaration that the issuance of the 11.76 million new shares, issued to NIB “was contrary to and in breach of [Sagicor’s] restated Articles of Incorporation and the rules of the Securities Exchange of Barbados 1987, and is accordingly null and void”.

Private placement - Wikipedia

Private placement (or non-public offering) is a funding round of securities which are sold without an initial public offering, usually to a small number of chosen private investors.[1]

It appears that this “private placement” was favourable to the buyers. Quote from above Nation News article:

On December 29, 2009, Sagicor closed the deal with the NIB issuing the shares at $3.32 per share, 18 cents below the then trading price of $3.50 per share.

This will be an interesting court case to follow. Why sell something for less than it is worth?  The National Insurance Board is a branch of the Barbados Government. Did the power structure use its influence to get a better price?


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