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Hart Group eyes US$6-m distribution facility
Earmaks expansion, IPO for Cargo Handlers Limited
BY ALICIA ROACHE Business reporter roachea@jamaicaobserver.com
Wednesday, October 13, 2010
HART Group is planning to invest US$6 million ($516 million) to develop a distribution facility at its subsidiary, Cargo Handlers Limited, at which it plans to offer an initial 20 per cent stake to the public by mid-November.
Mark Hart, CEO of the Hart Group, told the Business Observer that the conglomerate — which engages in distribution, manufacturing, port services, agriculture and tourism-related services — plans to put up $300 million of the investment and hopes to raise $50 million from the IPO.
Mark Hart
Mark Hart
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The first investor briefing to announce the listing and the offer of shares in Cargo Handlers — a 25-year-old company located in Montego Freeport Montego Bay — will take place tomorrow at the Wexford Court Hotel in Montego Bay.
According to Hart, 10 per cent of the shares in the company will be purchased by the company on behalf of the employees — 55 in all — at a nominal cost and invested in a trust fund that will be managed on their behalf as a reward for dedicated years of service.
"We are setting up the trust to be quite beneficial to the employees," he said.
Another 10 per cent will be openly offered to the public.
Hart is also seeking overseas partners to take the remainder of the investment.
"Depending on how much we are getting from our partners, it will determine the extent of our investment," he said.
Hart said the Jamaica Stock Exchange (JSE) — where it will list the shares on the Junior Market — is a good place to continue the growth of the company.
"The company has had very consistent results and it is a company that grows along with the economy. Within the last five years we have been seeing increased growth. The medium-term prospects are very good," said Hart.
It was generally believed that the Hart Group would list Caribbean Producers Limited (CPJ), a national distributor of wines and other goods next. However, Hart told the Business Observer that a listing of CPJ is being contemplated for the very near future.
"We are talking about the possibilities and we are looking at it. There are some new things that we here at CPJ are trying to do and the junior stock exchange will help us to raise some of that capital," said Hart.
If successful, Cargo Handlers' IPO and listing will be the second listing from the Hart Group of companies which comprises distribution, manufacturing, port services agriculture and tourism. The first was the listing of Blue Power Limited in April. Mayberry Investments Limited will be the primary brokers of the listings for Cargo Handlers. Mayberry has listed all six listing so far on the JSE Junior Market.
"Mayberry has shown that they have a very strong understanding of the listing requirements," Hart said of his decision to go with Mayberry. "They are one of the most active brokers in trading and equities and their team is very innovative."
http://www.jamaicaobserver.com/busin...cility_8046734
Earmaks expansion, IPO for Cargo Handlers Limited
BY ALICIA ROACHE Business reporter roachea@jamaicaobserver.com
Wednesday, October 13, 2010
HART Group is planning to invest US$6 million ($516 million) to develop a distribution facility at its subsidiary, Cargo Handlers Limited, at which it plans to offer an initial 20 per cent stake to the public by mid-November.
Mark Hart, CEO of the Hart Group, told the Business Observer that the conglomerate — which engages in distribution, manufacturing, port services, agriculture and tourism-related services — plans to put up $300 million of the investment and hopes to raise $50 million from the IPO.
Mark Hart
Mark Hart 1/1 The first investor briefing to announce the listing and the offer of shares in Cargo Handlers — a 25-year-old company located in Montego Freeport Montego Bay — will take place tomorrow at the Wexford Court Hotel in Montego Bay.
According to Hart, 10 per cent of the shares in the company will be purchased by the company on behalf of the employees — 55 in all — at a nominal cost and invested in a trust fund that will be managed on their behalf as a reward for dedicated years of service.
"We are setting up the trust to be quite beneficial to the employees," he said.
Another 10 per cent will be openly offered to the public.
Hart is also seeking overseas partners to take the remainder of the investment.
"Depending on how much we are getting from our partners, it will determine the extent of our investment," he said.
Hart said the Jamaica Stock Exchange (JSE) — where it will list the shares on the Junior Market — is a good place to continue the growth of the company.
"The company has had very consistent results and it is a company that grows along with the economy. Within the last five years we have been seeing increased growth. The medium-term prospects are very good," said Hart.
It was generally believed that the Hart Group would list Caribbean Producers Limited (CPJ), a national distributor of wines and other goods next. However, Hart told the Business Observer that a listing of CPJ is being contemplated for the very near future.
"We are talking about the possibilities and we are looking at it. There are some new things that we here at CPJ are trying to do and the junior stock exchange will help us to raise some of that capital," said Hart.
If successful, Cargo Handlers' IPO and listing will be the second listing from the Hart Group of companies which comprises distribution, manufacturing, port services agriculture and tourism. The first was the listing of Blue Power Limited in April. Mayberry Investments Limited will be the primary brokers of the listings for Cargo Handlers. Mayberry has listed all six listing so far on the JSE Junior Market.
"Mayberry has shown that they have a very strong understanding of the listing requirements," Hart said of his decision to go with Mayberry. "They are one of the most active brokers in trading and equities and their team is very innovative."
http://www.jamaicaobserver.com/busin...cility_8046734
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