Seprod reinvests in Facey
Published:Friday | March 9, 2012 | 12:00 AM
Seprod Limited has acquired a minority share ownership in Barbados-based Facey Group Limited.
Facey is a distributor of Seprod products, primarily in Jamaica.
The combination of ordinary and preference shares were acquired at a total cost of approximately US$13.2 million (J$1.15 billion) at fair market value from Citigroup Financial Products Limited, Seprod said.
Seprod paid US$7 million for the common shares and US$6.1 million for the preference shares. The size of the holding was not disclosed.
As part of the deal, Seprod says it gets accrued preference dividend amounting to US$939,305.29. The size of the
Seprod manufactures and distributes edible oils and fats, corn products and other household consumer products within Jamaica and for the export market.
Musson Jamaica Limited is the largest shareholder in Seprod. Musson also owns Facey Barbados.
Seprod was also once an investor in Jamaican company Facey Commodity Company Limited.
In 2005, Seprod and Musson transferred their share ownership in Facey Commodity, amounting to 48.8 per cent each, into a company called Gatcombe Investments Limited. The companies each held 50 per cent of Gatcombe.
Seprod sold its Gatcombe holdings for US$20.319 million, to Musson, according to a 2010 financial disclosure. The deal was structured so that the majority of the proceeds, US$15.24 million, would have been paid as long-term receivables over three years at average interest of 10.67 per cent. The loan was later restructured and repriced at 12 per cent.
In more than 30 countries
Facey Group Limited is a diversified distribution conglomerate incorporated in Barbados with subsidiaries in more than 30 countries throughout the Caribbean, Central America, Europe and the Pacific, Seprod said in this week's market filing on the new investment.
The alliance, it said, helps position Seprod to increase its export earnings.
Facey Group operates in three principal lines of business, namely telecommunication services and distribution, consumer distribution of food and pharmaceuticals, and information technology services.
Efforts at comment from Seprod head Byron Thompson and Musson Jamaica's boss Paul Scott were unsuccessful.
Scott is the chairman of Seprod.