KINGSTON, Jamaica – Marcus Richards, executive vice-chairman of Greystone Capital Partners Limited and spokesperson for Argyle Industries Inc, the special purpose vehicle which was formed to hold the shares of investors who purchased the holdings of GraceKenndey Limited (GK) in Hardware & Lumber (H&L) in December, said Monday that the company is aiming to gain 100 per cent acquisition of shares in the company.
Argyle acquired 58.23 per cent shareholding from GK.
A tender for the remaining 33,764,719 ordinary stock units dated January 29, 2016, opened on Monday, February 1, with the closing date set at March 4.
An offer of $18.50 per share — similar to that made to GraceKennedy — is being made for the remaining shares. Total shares outstanding for H&L are 80,842,023 units.
Richards said the target for Argyle was 100 per cent of shareholding, the acquisition of which might cost another $600 million. Just over $870 million was paid for the 58.23 per cent already acquired.
Sponsoring broker for the tender is GK Capital Management Limited.
Argyle, which is domiciled in Castries, St Lucia, includes ABBECO Invest SA (a Bahamian investment company), Sterling Asset Management Limited along with its affiliates and associates, and Greystone Equity Partners Inc (along with its affiliates and associates).
The deal with GraceKennedy was sealed on the December 29, 2015. H&L currently comprises two separate divisions — Rapid True Value, the local supplier of hardware and home improvement products, and the Agro Grace business, local wholesaler and retailer of agricultural products.
There are currently 10 Rapid True Value outlets across Jamaica, along with six Agro Grace Retail Centres.