AS Bryden Initiates Full Takeover of CPJ

• A.S. Bryden& Sons Holdings Limited (ASBH) announced that it has acquired an additional 30.4% stake in Caribbean Producers (Jamaica) Limited (CPJ) in exchange for 94,871,379 newly issued ordinary shares of ASBH to the sellers of the CPJ shares.
• With this additional purchase, ASBH owns 75.3% of CPJ and CPJ is now a subsidiary of ASBH. Given that its increased ownership represents more than 50% of the issued share capital of CPJ, ASBH will be extending a Mandatory Offer to all remaining CPJ shareholders within thirty (30) days in accordance with the Jamaica Stock Exchange's General Principles relating to Take-overs and Mergers.
•  “ASBH's increased ownership of CPJ is consistent with our objective of purchasing additional shares we shared (sic) following the acquisition of our strategic stake in July. We will soon extend an offer to purchase shares from all CPJ shareholders on equivalent terms subject to CPJ remaining a listed company.” said Nicholas A. Scott, Director of ASBH.
•  “We are committed to becoming the leading distributor of food and premium beverages to hotels, resorts and restaurants in Jamaica and across the Caribbean. As a member of the Brydens Group, CPJ will now have access to greater resources and a regional platform.” said P.B. Scott, Chairman of ASBH.
• ASBH’s stock price has fallen 7.0% since the start of the year and closed Monday’s trading session at $30.80 per share. Market reaction has been relatively muted following Friday's announcement, with stock prices trending down slightly by 0.5%. At this price, the stock trades at a P/E of 15.9x earnings, which is above the Main Market Manufacturing & Distribution Sector Average of 13.2x earnings.

(Sources: JSE & NCBCM Research)