The new Clico board can now take control of the largest block of shares in Angostura Holdings Ltd., the Laventille-based company that makes Angostura Bitters, rum, and other products.
The insurance company maintained for years that 2003 trust deeds gave it 42,830,350 shares in CL World Brands, a wholly owned subsidiary of CL Financial, after Clico collapsed in January 2009.
The question was whether CL Financial owned 42,830,350 CL World Brands shares on trust for Clico or was entitled to them.
The legitimacy of three June 11, 2003 trust deeds and four November 15, 2003 trust deeds was at issue.
The legitimacy of the trust deeds was established on June 20, 2023, when High Court judge Kevin Ramcharan ruled that CL Financial owned 42,830,350 CL World Brands shares on trust for Clico.
CL World Brands, a holding company for CL Financial’s alcohol companies, owns 100% of St. Lucia-based Rumpro Company Ltd.
Angostura annual reports indicate Rumpro as owning 92,551,212 shares, or 44.97% of the firm.
At Friday’s Trinidad and Tobago Stock Exchange closure, Rumpro’s 92,551,212 shares were worth $2.126 billion (US$312 million). The value of all Angostura shares was $4.729 billion (US$695 million).
Ian Benjamin and Kerwin Garcia, SC, representing Clico, were instructed by Elena Araujo. Fyard Hosein, SC, and Sasha Bridgemohansingh represented CL Financial, instructed by Luana Boyak and Khrystanne George.
Jennifer Frederick, CL Financial Ltd.’s Compliance and Internal Audit director, chairs Clico’s new board. She was Angostura Holdings Ltd. board secretary from March 10, 2017 to April 1, 2019.
Last week, a CL Financial source told Guardian Media that the liquidating business will not challenge Justice Ramcharan’s verdict. If not appealed, Clico can acquire Rumpro’s 92,551,212 Angostura shares. Clico owns 5,294,866 Angostura shares. With Rumpro, Clico would possess 97,846,078 Angostura shares, or 47.53 percent of the company.
A government source stated Clico has not decided to sell CL World Brand shares. However, the source stated that “sale of the shares must be conducted at arms’ length and at the optimal price.”
According to T&T’s 2018 Insurance Act, local insurance companies cannot own more than 19.9% of any entity, hence Clico must sell at least 27.63% of Angostura.
Stable finances
Angostura earned $77.8 million after taxes in the six months ended June 30, 2023, up $10.2 million or 15% from 2022.
The rum and bitters maker earned $473.8 million, up $13.8 million year over year.
In his six-month review, Angostura chairman Terrence Bharath said: “The Group’s local and international sales strategies and brand management with local revenue increasing by $8.9 million or 3% to $273 million over the comparative period in 2022, mainly due to increased rum sales revenue of $4.8 million and Angostura Chill sales of $2.6 million.
Internationally, revenue rose 1.3% to $162.6 million from $160.5 million in 2022 despite logistics and freight challenges in some areas. Bitter exports rose $3.1 million or 2% year-over-year, mostly due to US sales. Due to enhanced production efficiencies and cost management measures, profitability has increased to 54% (2022: 51%), 21.9 percent (2022: 19.5%), and 23.6% (2022: 21.4%).
