Swansong - MFL sells final lots
Published:Sunday | February 6, 2011 | 12:00 AM
Avia Collinder, Business Writer
Montego Freeport Limited (MFL) has put its five remaining properties on the market for sale, with John Gourzong, company chairman, stating Friday that the move heralds the probable winding up of the company, which will have no other business activity when the lots have changed hands.
The land for which offers were invited in January includes two for commercial devlopement and three for residential development.
"As soon as we dispose of these five, we will be looking at winding up the company," Gourzong stated, also indicating that this process could take two years to be completed.
Company revenues are derived from the sale of properties and profits in addition to revaluation of property. Incorporated in 1966 as a land-development company, MFL has, over the past few years, focused on the disposal of land currently under its ownership.
The chairman stated as well that an extraordinary meeting of shareholders would be called in the near future to discuss delisting from the Jamaica Stock Exchange.
MFL, which has current assets between $500 and $750 million, has no liabilities. "We have no bank loans," Gourzong said on Friday.
The company is currently owned by the Government of Jamaica through the Urban Development Corporation, which has approximately 82 per cent of issued share capital of the company. MFL has 563,065,690 issued ordinary shares.
On April 1, 2009, the company owned four residential lots and seven commercial, of which sales agreements for six were executed.
no reason to continue
The most recent company report, dated June 24 , 2010, states, "Once the company has sold all the lots under its ownership, for development purposes, it would have achieved its mandate of developing the freeport area and thereafter would have no reason to continue."
It also pointed out: "The company's memorandum and articles of association, however, makes no provision for continuity by way of other investment or development opportunities. The company's future is, therefore, dependent on the views and wishes of its shareholders."