Susan Gordon, Business Reporter

Lewis

Three Bears has pushed back the opening date for its recent mandatory offer to acquire the remaining 39.77 per cent of ordinary stock units in Salada Foods Jamaica by a week, saying the printing of the offer documents was delayed due to the passage of Hurricane Dean which struck Jamaica on August 19.

The offer will now open September 7.

However, the majority shareholder of Salada, Donovan Lewis, and controller of Three Bears told Wednesday Business he would not adjust the offer price made on August 17 from $25.82 per share nor would he recommend existing shareholders to sell their shares below $45 per share unit.

His comments yesterday followed a recent announcement by Mayberry Investment Company that it would offer Salada's shareholder $32.50 per share - or $6.68 more than Lewis' offer - to acquire 51 per cent of the coffee company's near 10.4 million issued ordinary shares.

The advisory for the new opening offer date of September 7 was sent via the regulatory body Jamaica Stock Exchange last Friday.

Lewis told Wednesday Business in a brief interview yesterday that he had no interest in increasing his shareholding and made the mandatory offer only to comply with regulations on takeover bids.

"I would not recommend any shareholder to sell at $25.82 because the stock price is at $45," Lewis said, referring to the offer he has made.

"Even at $32.50, I would not recommend it," he added.

He said the price offered by Three Bears was based on the price he paid for the block of shares from the Caribbean Investment Funds.

The deal gave him 60 per cent ownership of Salada. Lewis also said he has no intention of taking up Mayberry's counter offer for a 51 per cent stake.

"The only person who can offer that 51 per cent for a takeover is me," said Lewis.

Mayberry would need to acquire at least 11 per cent of Lewis' holdings, plus all other shares, to take controlling interest in Salada.

On August 17, Three Bears, which controls just over 60 per cent of Salada, made a mandatory offer of $25.82 per share to minority shareholders as required under Jamaica Stock Exchange takeover rules. Mayberry Investment subsequently announced a $172- million hostile bid for control of the company.

Yesterday, the investment firm's CEO, Gary Peart, said the offer opened officially on August 30.

susan.gordon@gleanerjm.com