WI Petroleum Acquires JB Energy Facility

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The JMMB Group Capital Market has successfully placed a placed a $750-million preference share offer on behalf of local bunker fuel supplier, West Indies Petroleum Limited (WIPL) to aid in its acquisition of Jamaica Broilers’ subsidiary JB Terminal Port Esquivel Limited.

According to a release from JMMB, the funds raised will also be used to retrofit the facility, thus allowing WIPL to expand its operations and deepen its penetration of the local bunker market.

The preference shares, which have a maturity date of 2021, are cumulative, redeemable non-participating and pay a quarterly dividend of 11.50-percent.

Chief Country Officer of JMMB Group Capital Market Unit, Jamaica, Karl Townsend says the issue was fully subscribed by institutional investors and was taken up by pension funds.

The acquisition is structured as a cash and debt deal with WIPL paying cash of USD$4-Million and assuming USD$18.5-million of debt owed to Jamaica Broilers by the ethanol business.

It represents a total acquisition price of USD$22.5-million.

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