JPS grants rights to shareholders
Published:Friday | September 2, 2011 | 12:00 AM
Jamaica Public Service Company (JPS) approved amendments to the company's articles at its annual general meeting on Wednesday to reflect the equity stake or 40 per cent shareholding of new partner Korea East West Power (KEWP).
The price at which KEWP acquired the 40 per cent stake in JPS remains "unknown", according to JPS president Damian Obiglio. However, JPS's total equity as at December 2010 totaled US$395.7 million, which values KEWP's holding at US$158 million (J$13.6 billion).
"The main reason for the amendments is to reflect the incorporation of KEWP as a direct shareholder in JPS," said Obiglio.
The by-laws previously reflected one majority shareholder and minority shareholders.
The amendments will also allow the Jamaican Government to hold a position on the board regardless of whether it sells its minority stake in the utility.
Cabinet in July officially approved the sale of shares in JPS to KEWP following initial company announcements in April.
The shares were sold to KEWP by Japan-based Marubeni, each of which now holds equal shares of 40 per cent. The Government of Jamaica owns 19.9 per cent, while 3,000 shareholders own the remaining 0.1 per cent of the shares.
KEWP is Korea's largest thermal power-generation firm in sales volume and installed capacity. It owns and operates more than 9,500 megawatts of power-generation facilities in Korea.