September 13, 2011 – The Board of Directors of LdM has not yet responded to the offer circular submitted by Black Sand for good reason. Both the Financial Services Commission and the Jamaica Stock Exchange agreed that the circular did not comply with JSE rules or the Securities Act and Regulations.
The JSE informed us that LdM is not obligated to issue a Directors’ Circular until Black Sand issues a compliant circular. We have just been told that Black Sand has issued a supplement to the Circular, which we have not yet seen. We want to assure the market that the Board will meet the requirement at the appropriate time.
We have prepared the groundwork and obtained all relevant valuations to issue a Directors’ Circular if and when required. That Circular will also explain our trading strategy for the company’s future focused on growing value for all our shareholders. We remain focused on productivity and growth and are conducting business as usual in our operating companies.
This is the first attempt at a hostile takeover in Jamaica, so our local lawyers Livingston, Alexander & Levy, and our legal consultants in London, Jones Day, who have extensive experience in this area, are advising the Board.
We asked the JSE previously to issue a statement on the status of the offer so that our shareholders and the public did not form the view that LdM is tardy in its obligations. The JSE said it saw no need for this. We had suggested the same thing to the FSC since we believe it is the duty of the FSC to update the public about their interventions in the offer and to impose a time frame for compliance.
The Board remains confident these two bodies will meet their institutional mandates. Jamaica’s financial regulatory system is an effective watchdog for all shareholders and the public.
LdM is a robust company with successful operating companies and brands which compete on a global basis. The Board has an ambitious mission and through leadership and experience will protect and grow the value of this great company.
For more information please contact Knolly Moses or Gillian Baldeo 927-3266.