Barita updates prospectus
FSC offers no comment on questions surrounding the entitySunday, September 12, 2021
Barita Investments has updated the prospectus for its additional public offering (APO) on the direction of the Financial Services Commission (FSC).
In a release on Friday, the FSC said it asked Barita Investments to update the prospectus with an addendum “to ensure an orderly disclosure of material information relevant to the public offer”.
Barita Investments is trying to raise $10 billion in an APO which opened on September 6 and is scheduled to close on September 21. The company said it could also consider upsizing the offer to $15 billion.
The additional disclosures were made on Friday by Barita Investments and the FSC says it has no objection to the release of the addendum which was uploaded to the Jamaica Stock Exchange website after trading on Friday.
It outlined the company's results for the nine-month period which ended on June 30. The prospectus only had financial results for the period which ended March 30, which correspondents to the end of the half-year for Barita Investments.
It showed the company recorded net profit of $3.7 billion for the nine months. That was up 83 per cent or $1.7 billion relative to the out-turn for the same period of the prior year.
In the addendum, Barita Investments also addressed reports emanating recently out of Trinidad and Tobago, which referenced its parent company Cornerstone Financial Holdings, in which certain questions and concerns have been raised relating to transactions involving Barita and Cornerstone.
Barita did not reference the questions, but said it takes its “reputation and commitment to [its] stakeholders extremely seriously”, adding “to this end we have worked closely with the Financial Services Commission on the addendum to the prospectus with a view to give our current and potential customers, shareholders, our regulators, and the public enhanced information on Barita and its performance”.
The addendum comes even as the Jamaica Observer has asked questions of the FSC about the information in the public domain concerning the transactions involving Barita Finance, Barita Investments, and its parent company Cornerstone and the related entity 294 Inc — which is owned by Cornerstone's deputy chairman and founder Paul Simpson.
The FSC has so far offered no comment on the questions asked. However Sunday Finance has e-mailed questions to the regulator and awaits a response.
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