BS&T chairman Sir Allan Fields announcing the planned merger with Trinidad and Tobago energy and industrial giant Neal and Massy yesterday. (GW)

by Geralyn Edward

Barbados Shipping & Trading (BS&T), the country's biggest conglomerate, is planning to merge with energy and industrial giant Neal & Massy of Trinidad & Tobago.

In an announcement yesterday at the Warrens, St Michael headquarters, BS&T chairman Sir Allan Fields and chief executive Anthony King sought to head off rumours that Neal & Massy was in the process of taking over BS&T, the country's single largest private employer.

Sir Allan made it clear the proposal, which was yet to be approved by the Securities Commission of Barbados and the Trinidad & Tobago Securities and Exchange Commission, was a "friendly merger" of "unequals" but "BS&T was not for sale".

He also said he was positive regulatory authorities would give the plan the green light within a matter of days.

After that, he said, it would provide BS&T's 3 000 shareholders with details of the merger, explaining to them why it was in their best interest to support the deal.

"At the appropriate time . . . we will hold an extraordinary meeting with shareholders and if the shareholders bless it, then we move forward."

However, he stressed that "in the unlikely event" local shareholders did not approve the merger, then "it is business as usual for BS&T and Neal & Massy . . . . Nothing will change".

"The Barbadian shareholders who go along this road with us will become shareholders in a much larger company and that larger company will have investments in energy and things that the BS&T shareholders do not have access to," Sir Allan told the media.

The merged entity would be called Neal & Massy, BS&T Group Limited, he said.

It would be registered in the twin-island republic and listed on the stock exchanges of Barbados and Trinidad.

According to a joint statement in today's Press, after the merger, the new group would have annual revenues of over US$1 billion and employ almost 9 000 people.

"The absence of overlap in the respective operations augurs well for manpower retention," the statement added.

Meanwhile, King admitted there were valid concerns that BS&T was not performing as well as in some previous years, but stressed that the latest reports showed income attributable to shareholders had risen 22.4 per cent to reach $24.5 million at the end of March.

BS&T FACTS:

Highlights of Barbados Shipping & Trading Company Limited, and its subsidiaries for the six months' period ending March 31, 2007.

* Profits after taxation - $26.85 million in 2007, up by 20.5 per cent from 2006 when figures stood at $22.28 million

* Earnings per share rose to 32.6¢ per the period, compared with 26.6¢ for the review period last year.

* The company declared a half-year dividend of nine cents per share.

* Current assets for the company stood at $387.05 million.

* BS&T holds three per cent of Neal & Massy's total shares.

NEAL & MASSY FACTS:

Highlights of Neal and Massy Holdings Limited and its subsidiaries for the six-months' period ending March 31, 2007. One Trinidad dollar is equivalent to about BDS 32 cents.

* Profits after taxation - TT$172.18 million (BDS $57.39 million) in 2007, compared with TT$128.62 million (BDS $42.87 million) for the review period last year.

* Earnings per share rose to TT$1.80 compared to TT$1.36 for the review period last year.

* The company approved payment of an interim dividend of TT36¢ compared with TT31¢ last year.

* Current assets for the company stood at TT$1.9 billion (BDS$636.50 million) for the review period this year, compared with TT$1.8 billion (BDS$600.04 million) last year.

* Neal & Massy holds 23 per cent of BS&T's total shares.

geralynedward@nationnews.com