Al Edwards, Business Co-ordinator
EARLIER THIS year, Dyoll Group Limited ("DGL"), FINSAC Limited ("FINSAC") and Dehring Bunting & Golding Limited ("DB&G") entered into negotiations to facilitate the "buy-back" of FINSAC's 16,144,254 DGL ordinary shares by the existing shareholders of DGL.
These negotiations successfully resulted in the signing of a Memorandum of Understanding (MOU) establishing the broad outline of this buy-back arrangement.
OFFER DOCUMENT
Further to the conclusion of this MOU, price negotiations have now been completed, allowing for the finalisation of an offer document.
This document details the terms and conditions of the offer for sale made by FINSAC of 16,144,254 shares in DGL and includes application forms for the attention of DGL's existing shareholders.
On Thursday, October 23, Dyoll Group Ltd and FINSAC signed this document at an informal gathering at the Head Offices of Dehring Bunting & Golding Ltd., which has been mandated by DGL on behalf of the company's shareholders to act as exclusive financial advisors to the offer.
This document provides, among other things, that FINSAC's shareholding in DGL will be offered to DGL's existing shareholders at a rate of one (1) ordinary share for every 2.77 ordinary shares held in DGL at a price and at a future record date to be announced.
The abridged financial results speak for themselves (see chart):
DGL is confident that the group is on a clear path to sustained and increased profitability, improving overall return on equity.
Once this share offer is successfully completed, which should be by the end of December, Dyoll Group Limited will be among the first of those companies, which had been a part of the intervention and rehabilitation programmes of FINSAC to be returned to its original Jamaican shareholders.
Speaking with Sunday Business, Dyoll's Company Secretary, Mark Thwaites said: "This latest decision now means that the Government through FINSAC, no longer has to participate in the running of Dyoll. The shareholders will now determine the group's direction and will no longer have to seek FINSAC's approval. FINSAC has been a very good partner and this has been a very successful intervention by it. FINSAC is getting a good return on its investment and it has seen to it that the company has been returned to the people who have remained loyal to it."
Over its 2002 financial year, gross operating revenue grew by 6.7 per cent to 887 million.
Operating profit before extraordinary items increased by 178.6 per cent to $75 million. Net profit for 2002 fell 28 per cent to $87.4 million.
At the same time Dyoll managed to cut its accumulated deficit to $21.5 million from the $128.3 million the year before.
Earnings per stock unit amounted to 143 cents.
Earlier this year Dyoll's chairman Christopher Bovell said: "This year will be one of carefully watching all our expenses, where necessary making adjustments to compensate for any fallout. We cannot increase our insurance rates nor can we increase the price of coffee if we hope to remain competitive."
