Banks Brewery

Directors of Banks Holdings Limited (BHL) Sold Shareholders Down the River for a Mess of Pottage

Banks DIH Limited says its recent sale of shares in Barbados beverage conglomerate Banks Holdings Limited (BHL) […]

was both “financially and commercially advantageous” and will increase shareholder value.In a press release issued yesterday, Banks sought to clarify the sale, which was seen as key to a takeover of BHL by Brazilian beer giant AmBev, and it noted that its directors were guided by financial and legal advisors.

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52 Comments on “Directors of Banks Holdings Limited (BHL) Sold Shareholders Down the River for a Mess of Pottage”

  1. William Skinner December 18, 2015 at 8:37 AM #

    @ David, I am happy to inform you that the Mahogany Coconut Group , has highlighted the Barbados Underground Blog as one of its Caribbean organisations of note for 2015. This will be published in the blog shortly. MCG sees BU as the foremost vehicle of free expression in Barbados. Keep up the good work.

    I hope that those promoting privatization, will realise that the piper calls the tune. Here we have government putting the Barbados National Oil Company on the market for 75 million BDS. The Simposon group and another party have put in offers. Now the government want a golden share and the potential buyers are sayiny NO. The government wants a certain amount of the shares to be sold to locals. They are saying NO. I have argued form day one that you cannot sell a man a car and then tell him who should drive or be driven in it. Beggars cannot be choosers. So those who were sentimental about Banks beer, were being completely oblivious to the simple fact that the word that matters is PROFIT. A word to the wise.

    Like

  2. David December 18, 2015 at 8:47 AM #

    Thanks William in behalf of the BU household.

    Here comes the privatization issue this government while on the campaign trail mamguyed the electorate.

    Like

  3. William Skinner December 18, 2015 at 9:04 AM #

    @ David , You and the BU household are more than welcome.
    The problem I have is what are we going to privatize. Once state agencies are privatised, the poor will not be able to afford the services. We are already a heavily privatised economy and we note how BST and the big businesses refused to invest in technology, and innovation and then went and sold the companies tp outside conglomerates. This privitzation was only put on the table by Arthur as a gimmick and true to form, the Sinckler , Inniss and the DLP are carrying the gimmickry to a new level. Imagine the airport and customs privatised and the unions want an increase. Bet your bottom dollar that they will find a way to bring in cheap labour.

    Like

  4. Bush Tea December 18, 2015 at 9:28 AM #

    @ William
    Is that not exactly what EVERY OTHER entity that has been sold off have been doing?

    ALL the serious jobs at ALL banks are done by foreigners. Any ‘Bajan-faced’ decisions have to be ratified in Canada or Trickidad.
    OUR ELECTRIC utility is now managed from Canada and local engineers reduced to messengers or gone home. Our green future DEPENDS on the whims of people in Ottawa.
    What happens to PHD, Banks etc now depend on the whims of AmBev.
    C&W/sLIME/FLOW(wolf) now even hire south americans to connect shiite wires to Bajan homes so that they can achieve record profit levels….

    @ David
    Did sLIME /FLOW buy out the BOA?
    Bushie understands that there is some arrangement where BOA (and our whole Olympic sport image) is now branded to this unpatriotic profit monster?

    We will soon reach the point where someone brings in a foreign Prime Minister who will work for $5000 per month…and who is actually intelligent looking….

    Like

  5. William Skinner December 18, 2015 at 11:42 AM #

    @ Bush Tea,

    Exactly. So why are we pushing privatization ?

    Like

  6. Gabriel December 18, 2015 at 4:05 PM #

    Meanwhile Banks DIH ratting on BHL.BHL gives the impression that Ambev got control because Banks Guyana sell their 6 million shares to SLU.What BHL omitted to say was that Guyana offered them the shares and they refused the offer.Is not Ansa a Caricom trading company?Why did not Guyana Banks offer to sell them at say $7.20 per share.That would have been more patriotic,but we are not so acculturated.As Sparrow said years ago on the subject of Federation,……..its dog eat dog and survival of the fittest!!

    Liked by 1 person

  7. Vincent Haynes December 18, 2015 at 8:46 PM #

    Banks originated in Guyana,it was never a Bim beer as we could never export it extra-regionally,we now have a golden opportunity to make our own……so what is the problem?

    Likewise what is the prob with starting our own milk plant.

    I have a difficulty understanding why this multi-national is interested in these small breweries/plants….one thing they have in common is the coca-cola franchise,could this be the reason?

    Like

  8. NorthernObserver December 19, 2015 at 2:18 AM #

    What a Hogwash thread title?
    Ambev began this bidding war with 40%. They only needed to get to 50%+1% to win (effective control). DIH is seen as tipping the scales, but any other permutation of shareholders could easily have done so. DIH obviously didn’t wish to sell to Ansa or they could have done so. For BHL to buy DIH shares in BHL, only serves to decrease the issued BHL shares outstanding, and decreases the number of shares either party needs for 50+1?
    The mere fact DIH would issue a statement saying they offered them to BHL but they didn’t accept the offer, is obviously some form of sour grape hogwash. It made no difference to the outcome.
    If DIH wish to be upset, be upset with Massy. For it was the Massy sale of their 20% to SLU at $4/share which got this whole thing moving. Then again the BHL ex-chairman Tinks was a Massy man, so maybe the sour grapes were thus directed at the BHL Board.

    Like

  9. Well Well & Consequences December 19, 2015 at 4:09 AM #

    @ Bush Tea,

    “Exactly. So why are we pushing privatization” ?

    W.Skinner……because you will lose those entities anyway, your ministers always need someone white from outside to show them everyyhing, to ‘invest’ money, to run some scam etc. They do not have the self-esteem, confidence, experience, or will to effectively manage income generating state entities devoid of corruption.

    If those state entities are not stolen from the DBLP governments, they will still eventually sell them off for all the above reasons. The taxpayers will always be the losers.

    Like

  10. David December 19, 2015 at 6:32 AM #

    @NorthernObserver

    Why have you limited your critique to the DIH transaction?

    Like

  11. Atrue Freeman December 19, 2015 at 6:45 AM #

    Did ANSA receive the same $7.10 or was this a separate deal?
    http://www.barbadostoday.bb/2015/12/19/trini-move/#comment-81859

    Like

  12. Atrue Freeman December 19, 2015 at 6:55 AM #

    So the Board of Directors of BHL had no objections to BDIH selling its shares to SLU Beverages, but did the Board of Directors of BHL have objections to BDIH selling its shares to ANSA?

    http://www.barbadostoday.bb/2015/12/18/bhl-controversy-still-brewing/
    …“Accordingly, BDIH offered the first option to purchase its shares held in BHL to BHL. However the Board of Directors of BHL determined that it was not interested in re-purchasing shares held by BDIH in BHL, and had no objections to BDIH selling its shares to SLU Beverages,”…

    Like

  13. William Skinner December 19, 2015 at 9:36 AM #

    The broader discussion here is what are we really educating people for if they cannot bring any thing to the table. It is obvious that the world has caught up with us and we are either refusing to accept or simply don’t have the talent to do anything about it. Just recently I read in the papers :” Having received no suitable applications to our recent advertisement for the position of Business Development Manager, we intend to make application for a work permit to hire a Non -National.” Am I to believe that there is not one single Barbadian to fill such a position? Am I to believe that not one graduate from the University of the West Indies can fill such a position? What then is the real purpose of underwriting UWI? These are the questions that should occupy our minds rather than promoting the same political parties and politicians who apparently are only holding the keys for the real owners of the plantation.
    What this whole over blown Banks beer event has demonstrated is the simple fact that while we were talking about Banks being “we” beer, we were reduced to nothing more than observers and spectators. In a country of over 90 % Blacks , there is not one conglomerate of Black Barbadians , that could have even thought about making an offer to buy Banks. That is the broader issue here. Fifty years and two generations since we attained independence, we are now realising that there was no real vision to change anything.
    It was the Father of Independece, Mr. Errol Walton Barrow, who said that “one of these
    mornings”, we were going to “wake up” and find that we no longer own Barbados. I always say how on earth can you really lose something you never owned. But Barrow was the architect of modern Barbados and rather than creating in his people the real importance of owning “we” country, he was more interested in bringing the Public Order Act to Silence the progressive Black thinkers who KNEW that Barbados did not belong to we any way. The truth is now being revealed.

    Liked by 1 person

  14. Atrue Freeman December 19, 2015 at 9:46 AM #

    We want your company, but not your company
    http://www.nationnews.com/nationnews/news/75699/bntcl-offers

    Like

  15. David December 19, 2015 at 9:50 AM #

    @William

    You could easily have added the job for a mathematics teacher at Codrington. Are we to believe after the billions sunk in education we don’t have qualified teachers to supply at secondary level?

    Like

  16. Atrue Freeman December 19, 2015 at 10:20 AM #

    In which other reputable country could directors of a publicly traded company treat shareholders as the BHL directors did in their dealings with SLU, in both the initial transaction and since the $4 offer, and the regulators act as if it was all business as usual? The provision of the equivalent of a redemption right to a subset of shareholders, to the disadvantage of the other shareholders, without shareholder approval, is still a disturbing precedent that should concern all shareholders of Barbados public companies.

    Like

  17. William Skinner December 19, 2015 at 10:26 AM #

    @ David,
    Thank you . That in itself is a matter that should be carefully investigated by the Ministry of Education and both teachers’ unions. I will have to say that in terms of shock, this one really knocked me over !!

    Like

  18. Ping Pong December 19, 2015 at 10:29 AM #

    David

    How many Barbadian Mathematics teachers can speak Serbian?

    yours sarcastically

    Liked by 1 person

  19. David December 19, 2015 at 10:34 AM #

    @Ping Pong

    Point taken!

    Like

  20. David December 19, 2015 at 10:37 AM #

    @Atrue Freeman

    Didn’t Sinckler sell the sale of the BNTNOCL as a done deal? Did he indicate government wanting a golden share in his earlier pronouncements on the matter?

    Like

  21. Atrue Freeman December 19, 2015 at 10:58 AM #

    Of course the BHL directors will now expect the small Barbadian shareholders and their brothers and sisters to continue to patronize their products and create the foundation for their continued success. But should that patronage logically go to ANSA, based upon currently available information?

    Like

  22. William Skinner December 19, 2015 at 11:26 AM #

    @ Ping Point,
    This is a great point but it again reveals that all the talk about our “superior” education system cannot withstand serious scrutiny. Just the other day, sales were lost at Pelican because the stall owners/ crafts people could not speak spanish. Any progressive educational system, in a country depending on tourism, would have had a modern foreign language program in its PRIMARY schools. All Barbadians students entering high school should have been exposed to a foreign language. Once we start to have these kinds of discussions , the lies, deception will be exposed.

    Like

  23. David December 19, 2015 at 11:33 AM #

    For many years Spanish as a second language was promoted at secondary level, why have we not seen the idea translated to a bilingual majority population?

    Like

  24. NorthernObserver December 19, 2015 at 2:10 PM #

    @David
    My apologies (sincerely)
    The BoD should be fully chastised for their actions going back to [at least] the financing deal with Latin Capital. It would seem clearer, the chances the whole Board knew of, or understood, the poison pill, is dubious. Or as #ATrue points out the segregation of rights they permitted.
    Prior to the note conversion, the Massy ownership position would have dominated the Board. What might be interesting is WHO, if anybody on the BoD, objected and to what? Or did they just jump down the collective well because they figured from a share-vote perspective “it didn’t matter”?

    Like

  25. BAFBFP December 19, 2015 at 2:31 PM #

    Next up for sale will be the National Petroleum Corporation … and then the Barbados Water Authority, and finally the National Oil Company … Political Parties are fcking us up the ass big time ..! Between them, lawyers and expatriate ownership (even of schools) this nation state will be reduced to be nothing more t
    han mere consumers and boys in the yard …!

    Liked by 1 person

  26. flyonthewall December 19, 2015 at 7:01 PM #

    I don’t think ANSA ever really wanted to own Banks. They knew from the start that AMBEV already had 40%. And they knew they could never match AMBEV in a share price war. They just like to shit in the well and foul the water for everyone. They will now do everything they can to convince loyal Banks drinkers that they have been fucked over and disrespected, and that they should register their disapproval by switching to Carib and Heineken.

    Like

  27. Atrue Freeman December 19, 2015 at 7:25 PM #

    flyonthewall December 19, 2015 at 7:01 PM # “… They just like to shit in the well and foul the water for everyone. They will now do everything they can to convince loyal Banks drinkers that they have been fucked over and disrespected, and that they should register their disapproval by switching to Carib and Heineken.”

    I think the BHL directors already did that. But they may expect us to respond to their actions as putzes would and we probably will.

    Like

  28. Just Saying December 19, 2015 at 8:38 PM #

    William Skinner December 19, 2015 at 9:36 AM #

    ”’What this whole over blown Banks beer event has demonstrated is the simple fact that while we were talking about Banks being “we” beer, we were reduced to nothing more than observers and spectators. In a country of over 90 % Blacks , there is not one conglomerate of Black Barbadians , that could have even thought about making an offer to buy Banks.”’

    Skinner your posit is a depressing narrative of the conspiracy that is the Banks mess engineered by the directors and management at Banks. The Banks directorate are an integral part of the business elite that have sold the family silvers to foreigners and Trinis partly to ensure that blacks don’t own any conglomerate.

    Government whether Bees or Dees are guilty in turning a blind eye to strategic moves by the business elites to deny the majority ethnic group a stake in the engine room of the economy. The dismissal by SOL and Rubis of a role for ordinary Barbadians in the shareholding of BNOC is a clear instance. Its past due when Government thinks outside the box in its privatization policies. Legislate if you must to mandate that credit unions with their billion dollar war chest be able to contest for lucrative public entities that are marked for sale. Insist that the credit unions bid for ownership of BNOC and revenue earning public businesses being offloaded, Harrisons Cave springs to mind.

    Sit with the Unions set out parameters and a road map to maintain profitability. A tactical shift to enable blacks through their credit unions to become players in big business is long overdue. Hundreds of professional blacks chomp at the bit to play a role in shaping Barbados strides to a more equitable distribution of the economic pie.

    Simpson, COW, Bizzy, Maloney et al are citizens still they persist in blocking entry of the majority ethnic group into their board rooms. This in spite of the fact that black consumers and workers are the reasons for their phenomenal wealth. What exists unbelievably in our independent sovereign nation state of ninety percent blacks is neo colonialism not far removed from the 1930’s of the white cork hat and overseer on a horse. Banks distasteful tussle sums up our socio economic dilemma.

    Liked by 1 person

  29. Bush Tea December 19, 2015 at 10:42 PM #

    ‘Just sayin’ shiite….
    That was VERY well said…
    VERY WELL.

    Like

  30. William Skinner December 20, 2015 at 5:14 AM #

    @ just saying,
    At the end of the day, beggars cannot be choosers.

    Like

  31. ac December 20, 2015 at 7:22 AM #

    i am intrigued or maybe dumbfounded how black barbadians has hold fast and stubborn to a defeatist attitude that they cannot be big players in the financial markets
    Preferring to be stymied by setting up psychological barriers which inhibits and distracts their need for taking risk

    Liked by 1 person

  32. ac December 20, 2015 at 9:00 AM #

    Recently the minister of commerce chided barbadians for the ardent attack on investors who leverage their profitability by venturing outside of their home territory for gain sake
    He happened to remarked with clarity that no one is stopping Barbadians from entering foreign markets to engage in legal capitalist ventures for similar pursuit
    There should be No disagreement on how a private company choose to disperse or liquefy their company assets within the letter of the law especially when the market in which they have set up business does not make any offers to suffice
    The goose stepping arrogance of those in barbados society like the bush teas to practice protectionism of a private companies assets with a hash tag branding of “Barbadianism’ or rightful ownership(of) is a dangerous and illicit passage headed down the road to totalitarianism which should be avoided at all cost

    Like

  33. David December 20, 2015 at 9:12 AM #

    @ac

    Is it possible for you to understand the concern with the BHL SLU deal is more about governance and transparency? Donville as is his wont is doing what politicians do, spin to political advantage. Yardies will struggle to understand however.

    >

    Like

  34. ac December 20, 2015 at 9:43 AM #

    Listen i understand and appreciate the voices given the differing sides on the issue however their is also a plausible and relevant attachment to the issue which continues to prick at the consciousness of bajan society that outside investors are chipping away at the roots of barbados pride and industry and sooner or later the barbados brand would be become obsolete and passe
    My interaction although differing in perspective give a need for barbadians to step up their game in the financial markets to get added advantage instead of belly aching and counting the negatives to help to counter and preserve the barbados brand
    There seems to be an razor sharp tone of political rhetoric intertwined insufficient to underscore that the financial market is a landscape having many widows of opportunity on which an individual can play
    Personally i do have a problem absorbing the attacks levied on investors when the attackers can take up financial nets and cast them far and wide like other investors have been doing with persistence

    Like

  35. Atrue Freeman December 20, 2015 at 10:53 AM #

    In the case of the BSE, why would undervalued shares or government debt with no alternative debt instruments react to anything?

    http://www.nationnews.com/nationnews/news/75547/downgrades-impact-bse-study
    “CREDIT RATING DOWNGRADES leave Barbadians anxious, but they are not even causing a ripple on the Barbados Stock Exchange (BSE). This “extremely difficult to explain” scenario has left two local researchers looking for answers…”

    Like

  36. Atrue Freeman December 20, 2015 at 10:57 AM #

    Dr. Robinson, I should add, why would A FEW TRADES IN undervalued…

    Like

  37. David December 20, 2015 at 11:04 AM #

    Ambev has wasted no time by replacing Anthony King as Chairman on the BDIL Board.

    Like

  38. Atrue Freeman December 20, 2015 at 11:22 AM #

    Minister Sinckler, go ahead and restructure as necessary for the GOB to offer a portion of its shares in BNTCL to the Barbados public. After that and no Barbados company is willing to take up the majority shareholding, look outside of Barbados. Do not allow the GOB to be held to ransom.

    http://www.nationnews.com/nationnews/news/75699/bntcl-offers
    “GOVERNMENT HAS FOUND two willing bidders for one of its most valuable companies, but neither is apparently interested in sharing even a small portion with Barbadians as stipulated in its sale offer…”

    Like

  39. Atrue Freeman December 20, 2015 at 11:24 AM #

    David December 20, 2015 at 11:04 AM #

    Given what happened to the last shareholders, who would not…

    Like

  40. Elbow in a Sling December 20, 2015 at 11:25 AM #

    Freeman
    Sinckler has to sell to SOL, he ain’t got no choice whatsoever.

    Like

  41. William Skinner December 20, 2015 at 11:31 AM #

    @ just saying,
    “Skinner your posit is a depressing narrative of the conspiracy that is the Banks mess engineered by the directors and management at Banks. The Banks directorate are an integral part of the business elite that have sold the family silvers to foreigners and Trinis partly to ensure that blacks don’t own any conglomerate.

    Government whether Bees or Dees are guilty in turning a blind eye to strategic moves by the business elites to deny the majority ethnic group a stake in the engine room of the economy. The dismissal by SOL and Rubis of a role for ordinary Barbadians in the shareholding of BNOC is a clear instance. Its past due when Government thinks outside the box in its privatization policies. Legislate if you must to mandate that credit unions with their billion dollar war chest be able to contest for lucrative public entities that are marked for sale. Insist that the credit unions bid for ownership of BNOC and revenue earning public businesses being offloaded, Harrisons Cave springs to mind.

    Sit with the Unions set out parameters and a road map to maintain profitability. A tactical shift to enable blacks through their credit unions to become players in big business is long overdue. Hundreds of professional blacks chomp at the bit to play a role in shaping Barbados strides to a more equitable distribution of the economic pie.

    Simpson, COW, Bizzy, Maloney et al are citizens still they persist in blocking entry of the majority ethnic group into their board rooms. This in spite of the fact that black consumers and workers are the reasons for their phenomenal wealth. What exists unbelievably in our independent sovereign nation state of ninety percent blacks is neo colonialism not far removed from the 1930’s of the white cork hat and overseer on a horse. Banks distasteful tussle sums up our socio economic dilemma.”

    Thank you, truer words have never been said. Just look at how the BLPDLP sat by and allowed the big boys to shut out all the black bajans from tourism. you are ABSOLUTELY correct.

    Like

  42. David December 20, 2015 at 11:37 AM #

    BU should also mention King was replaced on BHL and 3 vacancies filled with Ambev people. The carnage of the Bajan identify continues.

    Like

  43. Elbow in a Sling December 20, 2015 at 11:51 AM #

    cajan identity, Banks is a guyanese brand buddy.

    Like

  44. David December 20, 2015 at 12:11 PM #

    Some of you don’t get it with these references to Banks not being Barbadian. The same argument obtains for Sagicor where majority shares are owned by non Bajans. One day coming soon.

    >

    Like

  45. Atrue Freeman December 21, 2015 at 6:44 AM #

    Elbow in a Sling December 20, 2015 at 11:25 AM # “Freeman // Sinckler has to sell to SOL, he ain’t got no choice whatsoever.”

    SOL could buy the majority interest, including any shares allocated to the public and not taken up. But the GOB should not abandon its strategic of widening the shareholder base in Barbados because it does not fit the strategy of some potential major investors.

    Like

  46. Bush Tea December 21, 2015 at 7:47 AM #

    @ William
    Just look at how the BLPDLP sat by and allowed the big boys to shut out all the black bajans from tourism
    +++++++++++++++++++++++++++++++++++++++
    From Tourism…?
    Boss, black bajans have even been shut out from such work as digging wells.
    COW has now monopolised that work with a ‘digging machine’, and ensured that he ALONE collects all the money from that business which previously employed simple people.

    Cane harvesting has been mechanised;
    Cars have been computerised;
    shiite then!! COW even buy a machine to make sidewalks…

    The POINT of all this, is that ALL of this work that was previously spread across the community, has now been concentrated into a few greedy hands – AND ALL WITH THE COMPLICITY OF THE BLP AND DLP POLITICAL TRAITORS.
    This is diametrically OPPOSITE to what Barrow and Crawford did in the early days…

    Just like the sugar industry has folded despite the deliberate exclusion of Bajan workers, so too shall all the other shiite fold…. and great shall the fall of the materialistic vultures and their political ass-lickers.

    Like

  47. David December 21, 2015 at 11:33 AM #

    The BHL shareholders notice confirms SLU has acquired about 97% of shares in BHL, did government agencies sell their interest?

    Like

  48. Hants December 21, 2015 at 1:19 PM #

    The part owners of Barbados in trouble.

    “Two weeks ago, the Central Bank announced that Trinidad and Tobago is officially in a recession, after showing four quarters of negative economic growth”.

    Like

  49. Just Saying December 22, 2015 at 11:56 AM #

    Without a doubt Anthony King departed BHL in a special golden parachute. Bushes do you or the whistle blowers have a dollar figure on the package that accompanied him to a future of increased comfort?

    Like

  50. Lawrence James Bauer, CFA January 15, 2016 at 12:31 AM #

    Does anyone have any information about the final status and payments for the shares tendered? Are local people getting paid?

    I tendered mine a month ago, but I’ve heard nothing, received nothing, and can’t find anything on the Internet. I included a detailed letter, giving them several ways to contact me if there was any problem.

    Any ideas?

    Like

  51. Bush Tea January 15, 2016 at 7:20 AM #

    This is Barbados Lawrence…. you must be thankful if you hear anything before 2017.
    They are probably awaiting their tax returns too….before paying the shareholders….

    Like

  52. David January 17, 2016 at 6:49 AM #

    @Lawrence

    This link should help.

    http://www.nationnews.com/nationnews/news/76760/black-white-quietly-closing-banks-holdings-deal

    After all the hoopla the sale goes through, surprise anyone?

    Like

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