Barita Investments’ reorganization is going to be a major turning point for the company. A major announcement that has come out is that the company will be delisted from the stock market and will likely reappear under a new name.
The overall reorganization from the outside looking in, never really caused a lot of scuffles with Jamaica’s Central Bank (JCB) as Cornerstone United Holdings Jamaica (CUHJL) secured a non-object from JCB.
Malindo Wallace, Chief Legal Officer, and Company Secretary came out with statements that gave us more information as to how the organization will look. Basically, the reorganization will ensure that all regulated entities within the Group are held under one holding company to enable consolidated supervision under the Banking Services Act by the BOJ.
This new structure covers a broad scope, Cornerstone Trust & Merchant Bank Limited (CTMB), Barita and its subsidiary, Barita Unit Trusts Management Company Limited (BUTMC) will be held under the financial holding company (FHC). All of these subsidiaries will come under one main umbrella where Cornerstone Financial Holdings Limited (CFHL), will be holding all the assets and liabilities.
Additionally, the shares held by CUHJL in CTMB and Cornerstone USA will be transferred to CFHL. This will now see existing shareholders who currently own an equal number of shares in each of the Cornerstone entities owning one set of shares in the combined entity of CFHL.
As such, a newly formed FHC will be created as a subsidiary of CFHL. The FHC, post incorporation, will issue shares to CFHL in exchange for the transfer by CFHL to the FHC of shares it owns in Barita and CTMB. The FHC will thereafter become the direct parent of Barita and CTMB.
Additionally, the statement explains that “the Cornerstone shareholders in CFHL will continue to hold their shares in CFHL in the same proportion as they did prior to the implementation of the Scheme.”
“CFHL will become the ultimate holding company for the Group. As a pre-requisite of the process, an application will be made to the Supreme Court for the convening of meetings by the Group companies that will be reorganized to allow the shareholders to consider and vote on the Scheme.”
After the process, FHC will now be listed on the stock market instead of Barita.
