Cable & Wireless Jamaica (C&WJ) – which trades as Flow Jamaica – will initiate a share cancellation programme this week as its ultimate parent company Liberty Latin America (LLA) seeks to take full control of the business. According to the Jamaica Gleaner, C&WJ shareholders will vote on 21 November to legally start the process under a court-sanctioned scheme of arrangement. Minority shareholders – equivalent to just 8.3% of the company’s shareholding – will get a vote, but LLA’s overwhelming majority is likely to win out.
A C&WJ spokesperson told the newspaper: ‘If approved by the C&WJ shareholders and sanctioned by the court, the shares in C&WJ held by C&WJ shareholders other than the Liberty Latin America (LLA) Group will be cancelled and those C&WJ shareholders will be paid the sum of JMD1.45 (USD0.011) for each of their cancelled C&WJ shares, in cash.’
Note: the share price matches the amount paid in March this year, when C&WJ acquired 1.6 million shares ahead of its delisting from the Jamaica Stock Exchange (JSE).