Lascelles wins in Black Sand takeover case

Correction & Clarification

In response to the article 'Gov't may seek deffering payment to Venezuela', published in the Financial Gleaner on Friday, December 2, the Ministry of Finance and Planning denied a claim concerning deferment of interest payments to Venezuela under the PetroCaribe arrangement. It said: "The Government of Jamaica has not sought, and is not seeking to defer any form of debt payments to Venezuela. Jamaica remains current on all external debt payments. In December 2011, the Government paid the current amounts of US$2.6million due under the PetroCaribe Agreement, bringing the total amount paid for the calendar year to US$42.2million." In the story published on Wednesday, December 7, under the headline, 'In Black Sand takeover bid, judge rules-Private firms must show the money', it should have said that CL Financial and not Lascelles defaulted on the notes issued through subsidiary CL Spirits.

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Conglomerate Lascelles deMercado (LdM) can now avoid issuing a director's circular in response to its hostile takeover bidders Black Sand Acquisition Group based on a court ruling yesterday, the company's management said in a release.

"It was ... declared that LdM was not under any obligation to issue a director's circular in response to the takeover bid circular released on August 4, 2011 and as supplemented on September 13, 2011 and October 18, 2011," Lascelles said.

It added that the Supreme Court ruled on Wednesday that Black Sand's offer to take control of LdM was non-compliant with the Securities (Takeovers and Mergers) Regulations and the rules of the Jamaica Stock Exchange. This landmark decision examined the level of accuracy expected in relation to statements in takeover bid circulars and the level of financial details required by the regulations and JSE rules for takeover bid circulars.

Lascelles said it was satisfied with the outcome.

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