Supreme Court allows C&WJ minority shareholders to retain shares

21 Mar 2019

Cable & Wireless Jamaica (C&WJ) – which trades as Flow Jamaica – has been dealt a blow in its attempt to squeeze out minority shareholders, the Jamaica Gleaner reports, after the Supreme Court ruled that entities holding roughly 8.3% of the telco’s shares can retain their shares. The Supreme Court ruled that Liberty Latin America (LLA) – which controls the bulk of C&WJ shares through Cable & Wireless Communications (CWC) and its affiliate Kelfenora – should not have been allowed to vote in the same ‘class’ as minority shareholders in a vote held in November 2018. Eric Jason Abrahams, who – with his affiliates – holds 64 million units of C&WJ stock through CASA Corporation told the newspaper: ‘The court has told the company that it cannot force shareholders to sell now.’

The court also rejected an application by C&WJ to reorganise under a scheme of arrangement. That would have paved the way for the telecoms to cancel all outstanding minority shares and give its US-based parent, LLA, 100% ownership.

According to TeleGeography’s GlobalComms Database, C&WJ delisted from the Jamaica Stock Exchange (JSE) in March 2018, following a JMD1.45 (USD0.011) per share shareholder offer. This offer was replicated in November, as LLA sought to squeeze out the remaining minority shareholders – only for the telco to end up hauled in front of the Supreme Court.

Jamaica, Flow (Jamaica), Liberty Latin America (LLA)