Derrimon to make offer for all ordinary shares in Caribbean Flavours and Fragrances

Derrimon Trading Company Limited today said that it intends to make a cash offer for all ordinary stocks of Caribbean Flavours and Fragrances (CFF) Limited which it does not currently own.

In a release, Derrimon said it already holds 44,078,122 units in CFF, representing approximately 49.02 per cent of the ordinary stocks.

The offer is intended to complete the implementation of a prior arrangement between Anand James and Dr. Joan James for their sale of 23,379,208 units in CFF to Derrimon, the release said.

“This arrangement was previously announced on December 21, 2016,” said the company, noting that the offer is being made in accordance with the Securities (Take-overs and Mergers) Regulations, 1999 and with the rules of the Jamaica Stock Exchange.

The consideration under the offer will be J$4.50 for each ordinary stock unit of CFF tendered.

In addition, Derrimon said it will pay interest to tendering stockholders on CFF stock units in response to the offer at the prevailing weighted average six-month Treasury Bill rate of 5.561 per cent from December 21, 2016 up to, but excluding the date of settlement.

The offer price represents a discount of 62 per cent to the closing price of CFF’s stock units on the Junior Market of the Jamaica Stock Exchange on January 16, 2017, it said.
The offer is necessary, however, to comply with the takeover regulations and the rules of the Jamaica Stock Exchange.

The formal launch will be on January 20, 2017.

Derrimon Trading, located at Marcus Garvey Drive in Kingston, distributes dry and frozen bulk commodities.

It also operates a retail division through its seven Sampars Cash ‘N’ Carry locations and  sells its own products under the brand name Delect.

For full story see Gleaner Business on Wednesday.