Cable Bahamas Ltd (CBL) announced this week that it would be proposing at its upcoming annual general meeting a three-for-one (3:1) share split of its ordinary shares, providing greater marketability and liquidity in the market and making shares more affordable, especially to potential smaller investors.
If approved, the directors of the company will determine the timetable for the share split.
The BISX-listed company has been publicly traded since its initial public offering (IPO) in 1994. The company purchased all foreign-held shares in 2010, becoming 100 per cent Bahamian owned at that time.
“For some time now, the market has demonstrated confidence in Cable Bahamas’ current and future performance demonstrated, among other things, in the gradual increase in the price of the shares on BISX,” said Gary Kain, chairman of the company.
“By splitting the shares at this time and effectively reducing the price per share, Cable Bahamas is making it possible for current and prospective shareholders to realise in a very tangible way the benefits of Cable Bahamas’ success. This initiative is a part of our mandate to create and support shareholder value while supporting the liquidity in the market. This is a fantastic opportunity for all stakeholders. ”
Cable Bahamas’ Vice President of Marketing David Burrows said, “We’re tremendously excited about what this means for all Bahamians. Cable Bahamas is already 100 per cent Bahamian owned and with this share split, even more Bahamians will have the opportunity to share in the success and growth of our internationally diversified company. This is especially true as we expand and develop into potential new areas of business, such as mobile communications and expand our market share in Florida. This is an opportunity for more individual Bahamians to be involved as shareholders in CBL and reap the success of our business.”
If current shareholders agree to the proposal, it will be the first time Cable Bahamas has split its shares. Since its 1994 IPO, when its shares were made available at B$1.00 each, the share price has risen to its present B$14.51 price (close of trading June 12, 2015) through its trading activity on BISX.
The stock split will only impact the ordinary shares of the company and no other class of shares will be affected.
