Government received above-market price for Guyana Stockfeeds’ shares – Badal

Dec 06, 2018 News 0

Contrary to “uninformed comments” circulating in the press, the Government of Guyana received the highest price possible for its minority shareholding in Guyana Stockfeeds Inc.

Businessman, Robert Badal

Hours after former Attorney General, Anil Nandlall, now in the Opposition, criticized the sale, calling for a probe, Guyana Stockfeeds’ Chairman, Robert Badal, defended it. He said that more than $140M was paid to the Government.
“If those making the noise on this issue to save their skin from corruption investigation and prosecution have a better offer I would willingly withdraw mine,” vowed Badal yesterday.
The businessman also controls the iconic Pegasus Hotel.
Last week, Minister of State, Joseph Harmon, announced that the Government of Guyana has sold its 6.7 percent shares in Guyana Stockfeeds Inc., to the majority shareholder.
The sale gave the businessman 100 percent control of the company.
Harmon told media operatives that Cabinet received a proposal from Badal for the sale of NICIL’s 6 .7 percent shareholding in Guyana Stockfeeds Inc., being 5437 ordinary shares at a price of $25 per share.
Harmon asserted that Badal’s offer was the only one Government received in response to two separate requests for proposals. He said that Cabinet then gave NICIL the approval to proceed with the transaction.
However, Nandlall criticized the sale saying no evidence of valuation was done.
Yesterday, Badal in defending the sale, said that at $25 per share it is way over the $15 he was initially prepared to offer.
“It is way over the local stock exchange last sale price. The total value for these shares offered for under 7% shareholding was more than what I paid for 35% of the company when I first took over its management.
To go further at $25 per share the Government is getting today 25 times what it would receive in annual dividends,” the businessman stressed.
According to Badal, the fact that no other buyer made any bid during an open tender means that no one was interested in a minority stake in the company and that its value to a rational buyer was not there.
“What valuation was done and by whom means nothing without a willing buyer. I am not affiliated with any political party. I received no favor from the Government; all negotiations were above board and at arms’ length. All due processes were followed. The Government must be congratulated for negotiating this price on behalf of all Guyanese.”
According to Badal, this is in stark contrast to the sale prices at which state assets were sold to cronies and friends under the former administration of the People’s Progressive Party/Civic.
He would be referring to a number of properties sold to close friends of the PPP/C without the proper process being followed.