Black Sand stands firm on offer price
Published:Friday | August 5, 2011 | 12:00 AM
Black Sand Acqusition Inc on Thursday re-affirmed its US$3.86 per share offer price for Lascelles deMercado and Company in response, it said, to shareholder queries on what went into the pricing of the shares.
But the William 'Billy' McConnell-led investor group said after market close Thursday that it would have bid higher at US$4.22 per share, but its offer took into account the recently announced dividend paid to shareholders and resulting reduction in Lascelles' assets via the interim dividend of J$5.50 per share and special dividend of J$25.80 per share.
The distributions paid July 27 were equivalent, said Black Sand to US$35 million.
"Had these dividends not been paid, the offer price for the ordinary shares would have been US$4.22.
Lascelles, at the end of June, had net cash of J$6.9 billion, enough to cover the dividends which in local currency terms amounted to just under J$3b.
The US$4.22 price would have valued the takeover offer at US$365 million to US$405 million.
Black Sand said the offer circular would become available today, August 5.