Barita Investments Limited (BIL), which acted as a lead broker in Derrimon Trading Company Limited’s (DTL) recent additional public offer (APO), today advised in a notice that it has acquired a minority stake of 20 per cent in the latter.
As a result, Derrimon Trading will become an associate company in BIL’s portfolio.
In the notice, BIL Chief Investment Officer Jason Chambers commented, “The board of directors of Barita and the leadership team of Cornerstone are very satisfied with this investment as Derrimon embodies several of the characteristics we typically look for in assessing investment opportunities.
“We are confident that our association with a company like Derrimon will only contribute positively to our overall future performance.”– BIL General Manager Paula Barclay
“DTL has built up an enviable track record of growth and value creation, and the management has demonstrated their ability to achieve scale both organically and through the successful integration of several accretive acquisitions,” he continued.
BIL was the lead broker and arranger of DTL’s APO that closed on January 26, 2021, and raised JM$4.076 billion in gross proceeds. In such a capacity, the investment firm earned the right to subscribe for shares in the Key Investors.
Following the closure of the APO, DTL shared that it fully allotted shares to applicants in the Key Investors category.
In fact, Derrimon’s APO marked BIL’s second opportunity to use its brokerage licence in a capital raise on the Jamaica Stock Exchange. In September last year, the investment firm arranged and brokered its own APO.
According to Chambers, BIL’s purchase of the 20 per cent stake in DTL is a clear indication of its growth over the last two years and, moreover, of its “capacity to expand its portfolio of investments into sectors that are viable alternatives to traditional ones”. By doing so, he said, the company will deliver premium shareholder value in the medium to long term.
“We also note the diversification factor that this investment adds to our portfolio as it provides exposure to the real sector via a company which has recently begun an international expansion. At Cornerstone and Barita, our goal is to positively impact the lives of our stakeholders through the tireless pursuit of opportunities that provide solid risk-adjusted returns throughout their investment horizons,” he continued.
BIL General Manager Paula Barclay reiterated that at this juncture in the investment firm’s history, it is continuously seeking “unique strategic opportunities” that will increase shareholder value.
“We are confident that our association with a company like Derrimon will only contribute positively to our overall future performance. Consummating this investment took significant effort from the team at Barita and I would like to take this opportunity to extend my gratitude to them for their hard work,’ she noted.