New leading CUC shareholder

About the article

This is a digitised version of an article from The Cayman Compass's print archive. Occasionally, the digitisation process introduces transcription errors, or other problems.

See the article in its original context from February 2003.

Brought to you by

KBD Foundation Logo
Open Original Page
Article scan
The largest shareholder of Caribbean Utilities Company (CUC), Cayman's sole electricity provider, is now the foreign energy entity Fortis Inc. A CUC press release said last Thursday's acquisition of 3,863,695 Class 'A' shares, about 15.9% of the outstanding Class 'A' shares for CUC, cost the Canadian power company almost US$46 million and brings its total portfolio up to 9,301,395 shares.

The second largest share transaction in CUC's history since becoming a listed company has almost doubled Fortis Inc's initial investment of three years ago. The release said the purchase price at US$11.90 a share was made through Fortis' wholly-owned subsidiary Fortis Energy (Bermuda) Ltd. and is said to comply with CUC's shareholders agreement.

Acquired for investment purposes, Fortis Inc may, according to a press release, "acquire additional securities of CUC or dispose of securities of CUC... in the open market, by private agreement or otherwise, depending on numerous factors". CUC President and CEO, Peter Thomson says, "Fortis has proven to be a strong strategic equity partner for CUC since it made its initial investment in 2000. It has created synergies in the areas of training, technology, environmental responsibility. We believe that strong local leadership with the support of Fortis is a key to continued success.” The Newfoundland-based concern has no connection with Fortis Bank or Fortis Fund Services. Fortis Inc. is a diversified electricity holding company with assets exceeding Cdn.$2.0 billion and annual revenues exceeding Cdn.$700 million. Its only other holdings outside those in Canada and Cayman are in the USA and Belize.

The share buyout coincides with the acquisition of 3,737,425 Class 'A' shares by a new Cayman company part-owned by Mr. Thomson. The second largest shareholders are now CUC President and CEO along with Frank J. Crothers and Peter N. Thomson. The release said they formed International Power Holdings Ltd. through their respective holding companies (International Resources Limited and Power Corporation of Cayman) to hold this investment. The amount represents 15.3% of the company's Class 'A' ordinary shares previously held indirectly by International Resources Limited and Power Corporation of Cayman.

CUC has advised the Caymanian Compass that the transactions will not have any impact on either customers or its shareholders.