THE DIRECTORS OF BANKS Holdings Limited (BHL) have dropped a bombshell that could rock any attempts by Trinidadian company ANSA McAL to gain control of the local beer company.
Board chairman Anthony King and director Chris deCaires revealed yesterday in a circular to shareholders that an airtight agreement between South American company, Latin Capital Fund (LCF), which financed Banks Brewery’s new $56 million Newton, Christ Church plant might have become a $132.50 million albatross around BHL’s neck.
LCF’s 2010 agreement with BHL not only limited BHL from issuing any new shares without LCF’s permission, it also gave LCF the right to convert part of the BHL debt into shares. And LCF quickly utilised that option, converting a portion into a 20 per cent shareholding in BHL in 2010. Those shares it then vested in SLU Beverages, a company it registered in St Lucia.
In September, Brazil-based global beer giant AmBev bought SLU and announced its takeover plan for BHL days later.
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