In December 2017, the Board of Directors of Cable and Wireless Jamaica, [JSE: CWJ], received an offer from CWC Cala Holdings Limited wanting to purchase over 3 billion shares from minority shareholders. CWC is a subsidiary of Liberty Global, the parent company for Cable and Wireless Jamaica. CWC Cala Holdings Limited along with Kelfernora Limited currently holds 82% shares in Cable and Wireless Jamaica (CWJ).
Despite the current legal battle before the court concerning the offer, Cable and Wireless Jamaica (CWJ) Directors are urging shareholders to accept the offer; which is logical. If the company receives 90% or more acceptances, then the law allows for compulsory acquisition of the remaining shares. If this is achieved then an application will be submitted to have the stock delisted from the market. Even if the company receives less than 90% acceptances but still meet the delisting threshold, they can still apply for the stock to be delisted; which will profoundly affect shareholders who did not accept the offer.
The offer which expires January 31, 2018, is priced at $1.45. Bearing in mind, Cable and Wireless Jamaica’s (CWJ) stock price, at one point in 2017, did increase to $1.80.
Do you think $1.45 is a fair enough price to sell CWJ?
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