Susan Gordon, Business Reporter

Shrugging off its failed bid for Salada, Mayberry Investments Limited has moved on to its next project, a rights issue of redeemable preference shares.

The offer opens October at $3 per share. The buy price is 15 cents below the prevailing market price on the ordinary stock units.

Mayberry, a $22 billion company measured by asstes is offering up 120,114,929 redeemable preference shares to existing shareholders to raise $360 million.

The shares will be fixed at an annual 12 per cent but returns will be paid monthly. The issue opens to shareholders on October 17.

"Twelve per cent interest free is a top offer in the market," said Chief Executive Officer Gary Peart.

Subscribers to the offer may acquire one preference share for every block of 10 ordinary Mayberry shares.

1.2 billion units listed

The company has 1.2 billion units listed on the stock market.

The offer, which closes October 26, is renouncable. Shareholders who are allotted preference shares can transfer those rights to another investor, regardless of whether the transacting party is a Mayberry shareholder.

Allotment of the shares are expected by November 2, if the rights issue is not extended beyond its original closing date.

The shares are to be listed on the Jamaica Stock Exchange and should become available for trading on November 9, Peart said.

The investment company has not said how it plans to use the capital raised. Its CEO told the Financial Gleaner that if the Salada offer had been successful, the rights issue would have been larger than 120 million shares, but gave an unequivocal 'no' in response to whether it would finance the Salada take up.

Peart said the offer allows existing shareholders an opportunity to gain 12 per cent tax free on their investments, and that the monthly returns was a new twist on this type of investment.

Shareholders have until October 26 to renounce their rights. New shareholders who acquire Mayberry stock after October 12 are excluded from the offer.

Mayberry says the issue has not been underwritten.

susan.gordon@gleanerjm.com