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Berger Paints delists from another Caribbean stock exchange

On the close of business on Friday, October 11th, Berger Paints delisted from the Trinidad & Tobago Stock Exchange (TTSE).

Berger Paints has already delisted from the Jamaica Stock Exchange. The TTSE announced that the delisting of the company is pursuant to its rules related to the purchase of the company by ANSA McAL in July of 2017.

ANSA McAL is a diversified public conglomerate, listed on the Trinidad and Tobago Stock Exchange, with subsidiaries in Trinidad and Tobago, Barbados, St Kitts-Nevis, Guyana, Grenada, and the USA. It is involved in the manufacturing, brewing, insurance, finance, real estate, media, shipping, trading/distribution, and automotive and industrial equipment retailing sectors.

(Photo: Facebook @ANSAMcALGroup)

On its website, the regional paint company reports that in 2017 the ANSA McAL Group acquired Berger Paints Caribbean, with Berger Paints Barbados Limited being a fully owned subsidiary, while Berger Paints Jamaica Limited and Berger Paints Trinidad Limited were listed on the Jamaica Stock Exchange and the Trinidad Stock Exchange respectively.

“…[The] delisting of the company is pursuant to its rules related to the purchase of the company by ANSA McAL in July of 2017”

— Trinidad and Tobago Stock Exchange

Previously, in June 2019, it was reported that ANSA had ended the manufacture of Berger Paints in the twin-island republic. This was in line with the purchase of over 1.8 million shares of Lewis Berger (Overseas Holdings) Limited, representing 100 per cent of the shareholding of Berger in Trinidad & Tobago.

Jamaican acquisition and delisting

Based on media reports, the transition from a publicly held company to a privately held distribution company was not met with the shareholder vitriol seen in the Jamaican transaction.  In Jamaica, the share price was hotly disputed.

The official statement from ANSA was that, “The offer by the Trinidadian conglomerate to acquire the Berger shares at J$10.88 per ordinary share, which opened on September 7, 2017, and which was scheduled to close Thursday, September 28, 2017, has been extended to 4:00 pm Monday, October 9, 2017, for acceptance. On Thursday, October 7, 2017, the JSE suspended trading of Berger shares until Friday, October 13, 2017.”

According to media reports, this suspension of trading sparked further outrage. The matter was subsequently resolved.