The Anguilla Government is selling its ordinary shares of 4,636,100 in the Anguilla Electricity Company (ANGLEC) between August 25 and September 25, 2017. The cost per share is EC$5.86 and the minimum number of shares available to each subscriber is initially 100.
The Government has been the principal shareholder since the establishment of ANGLEC in January 1991. The prospectus for the sale of shares was launched on the grounds of the General Post Office on Friday afternoon, August 25. It was a well-attended and formal event which, in fact, started with the sale of several hundred shares in the morning.
Speaking at the launch of the prospectus, Chief Minister and Minister of Finance, Mr. Victor Banks, said in part: “The present divestment comes at a critical time in our strategy to resolve the banking crisis and to energize our depressed economic situation. The sale is intended to raise in excess of 20 million EC dollars in funding to support the resolution as well as other Government debt obligations. This will reduce the need for burdensome tax measures to the residents and businesses of Anguilla to meet these important obligations. The proceeds from this share offer will be used to assist the Government with its debt amortisation payments.” (The full text of the Chief Minister’s address is published on page 3 of this edition of The Anguillian.)
Minister of Infrastructure and Communications, Mr. Curtis Richardson, said that by selling its shares the Government was not seeking to place greater control of ANGLEC in the hands of the private sector.
“As Minister of Infrastructure, I am duty-bound to make sure that, over the coming years, legislation is put in place to ensure the empowerment and balance for entities such as the Anguilla Public Utilities Commission to protect and defend the ordinary citizens of Anguilla and their concerns,” he stressed. He expressed the hope that the sale of the shares would be oversubscribed.
Chairman of ANGLEC, Mr. Gareth Hodge, praised the leadership and Board of Directors, past and present, for working hard to ensure that ANGLEC is a viable company thereby encouraging members of the public to become shareholders of the company. He was grateful for the work of the teams from the Ministry of Finance and the accounting firm, BDO, for preparing the prospectus.
Mr. Hodge, who referred to ANGLEC’s thrust into renewable energy, went on: “The challenges are great, but the company has begun its transition into renewable energy – but we will forge forward and bring ANGLEC in successfully for all of its stakeholders including the Government and people of Anguilla.” He urged all members of the public to read the prospectus and to seek assistance from reliable sources to understand its provisions.
Senior Partner in BDO, Mr. Claudel Romney, described the 101-page prospectus as being a financial and historical document that outlines the evolution of electricity in Anguilla. The shares were being sold at the West End Branch of the National Commercial Bank of Anguilla with preference to Anguillian nationals. He explained the process of the allocation of shares and provided other pertinent information.
According to the prospectus, which Mr. Romney quoted to some extent, initially, up to 100% of the shares have been allocated for Anguillians/Belongers/Anguillian companies/corporate entities. The subscriptions are in rounds of 100 shares after the initial purchase of 100 shares to each shareholder until the shares are allotted.
The prospectus continues: “The above method is used to ensure an equitable distribution to a wider cross-section of Anguillians. For example, Subscriber “A” applies for 100 shares while Subscriber “B” applies for 400 shares of the new shares. In the first round Subscriber “A’s” request will be fully allotted. Subscriber “B” will be allotted 100 shares in the first round. In the second round of the allotment of 100 shares, Subscriber “B” will be allotted another amount up to 100 shares. In the third of allotment, Subscriber “B” will be allotted a further 100 shares. In the course of the third round if all of the shares on offer had been allotted then Subscriber “B” will have been allotted only 300 of his 400 shares requested. As demonstrated, this “Bottoms Up” approach gives preference to filling smaller subscriptions first.”
The launch of the prospectus began with a short address by Miss Anguilla 2017-2018, Ms Dee-Ann Kentish-Rogers. She urged members of the public to become involved in ANGLEC’s new distribution of shares. The launch ended with the Vote of Thanks by Permanent Secretary, Dr. Aidan Harrigan.
Earlier, ANGLEC’s General Manager, Mr. David Gumbs, presided over a raffle in which three persons won 100 shares each paid for by the Anguilla Social Security Board and the Anguilla Air and Sea Ports Authority.
