Cable and Wireless Jamaica delisting

CWJ Delisting from Jamaica Stock exchange

According to https://www.my-island-jamaica.com Cable & Wireless Jamaica Ltd. formerly the Telecommunications Of Jamaica Ltd. (TOJ) is the provider of local and international fixed telephone services.

Cable & Wireless’ origin dates back to the 1880s when telecommunications was just becoming famous. Hence, the name Telecommunications of Jamaica Ltd. Its name was later changed in 1998 to Cable & Wireless Jamaica Ltd.

Cable & Wireless is based in the country’s capital, Kingston, Jamaica. It is a subsidiary of the British-based Cable & Wireless Public Liability Company. It was founded in 1987 and 82% of its capital is owned by Cable & Wireless Public Liability Company.

This company started digitalizing its network in 1991 and today, it has 100% digital lines. It has proven to be the optimum in global revenue with markets in the United Kingdom, the Caribbean, Panama, Macau and Monaco.

Cable & Wireless services both the business and residential districts in Jamaica.

Financially CWJ stock has been doing very well over the past couple of years. In 2014 the share price went up 200 percent giving shareholders/investors huge returns on their investments. Since then it has been performing great and also saw another increase when the telecoms Giant merged with FLOW(Columbus Communications). Starting 2014 at $0.16 and closing at $0.48. Even without the announcement, LIME (Name change on November 3, 2008) led the market by mid-year, gaining 103 per cent at the end of June before doubling that gain with the announcement.

Coming out of VM Wealth Management

CWC Cala (CWC) recently released details on the offer made to minority shareholders of Cable and Wireless (CWJ), to acquire their shares at $1.45. CWC received approximately 1.63 billion shares in the offer and, together with affiliate Kelfenora, now control 91.69% of the ordinary shares of CWJ, which means that it would have to be delisted as JSE rules requires listed companies to have more than 20% of their shares in the hands of minority shareholders. CWJ has advised that a resolution has been passed by its Board of Directors to delist its ordinary shares at the close of business this Wednesday, April 11, 2018, after nearly 30 years as a listed company.

What does this mean for Investors?  CWC Cala says it plans to privatize CWJ through the required channels which means that it minority shareholders may now be forced to sell their shares to CWC Cala. CWJ closed today at $1.20 and is flat year-to-date.

And in case you are wondering CWC Cala is a subsidiary of  the Liberty Media behemoth that acquired CWJ in 2016.


Follow on Twitter
Like us on Facebook at Compass Trading Association
And join our group for weekly trading info Compass Trading Association