Cargo Handlers to invest in bulk petroleum company
Published:Wednesday | December 4, 2013 | 12:00 AM
Cargo Handlers Limited (CHL) has announced that it is making an investment in another Montego Bay company called Bulk Liquid Carrier Petroleum Limited, but is tight-lipped on the size of the acquisition.
CHL estimates that the investment could add $150 million to its revenue base.
The company's board approved the transaction on November 28.
"We still have a few things to tidy up," said CHL Chief Executive Officer Mark Hart. "I am reluctant to go into details now. We are still working on closing the deal," he said Tuesday.
CHL is in the business of handling bulk and containerised cargo - specialising mostly in cement, steel and lumber - which at year end September 2013 brought in annual revenue of $157 million, up from $128 million the previous year. The Bulk Liquid deal would, therefore, double CHL's revenue.
Managing director of BLCP, Chester Chung, was unavailable for comment up to press time.
CHL made annual profit of $85 million this year, up from $66 million in 2012. Its stock is currently trading at around $13.50 per share.