IEC Energy Company is offering Ciboney shareholders almost $8 million to buy their remaining shares.

So it seems like the ball is finally rolling over at Ciboney. 

IEC Energy Company, which is the company that purchased the majority stake in Ciboney from FINSAC, just launched its takeover bid.

Back in June, IEC’s parent company, Wiltshire Consulting and Advisory, bought FINSAC’s 72% stake in Ciboney for five cents a share, or almost $20 million . The shares were then transferred to IEC. The remaining 28% is held by other shareholders. 

You can watch our previous Ciboney video for a more in depth breakdown of the buyout.

Now because of the change in control from FINSAC to IEC, IEC is obligated to offer the remaining shareholders a chance to get out.

It’s important to note that Ciboney shareholders don’t have to take up the offer, but IEC still had to make it. They’re offering five cents per share for the remaining 152 million shares.  

Ciboney ended trading in September at $1.39 and is up 148% since the start of the year. Now that’s a dramatic difference between what’s being offered and the shares’ current trading price, so I feel like the offer is so low because they DON’T want shareholders to accept.

After all, IEC did say they have no intentions to take the company private.  If they own more than 80% of the shares, Ciboney would no longer be qualified to be listed on the JSE.  And that would presumably defeat the purpose of IEC buying Ciboney in the first place.  We’re working with the assumption that they bought this shell company because it’s basically a ready-made listing.  They don’t have to go through the trouble of an IPO.

IEC said will take steps to ensure they don’t own more than 80% of Ciboney or have less than 100 voting shareholders.

The offer to shareholders opened on September 22 and is expected to close on October 6.

As for how Ciboney will be rebranded, that’s still to be announced.

According to IEC’s website, they specialise in developing, financing, constructing, operating and managing clean energy solutions. 

Ciboney’s new Chairman, Nigel Davy, is also a director at Wigton WindFarm, and Wayne Wray, who owns IEC’s parent company, is managing director 365 Retail, which operates a Total Energies gas station.  

So, it’s quite likely that the company will transition into something in the energy industry, which would make it the third energy company listed on the Jamaica Stock Exchange, after Wigton Wind Farm and MPC Caribbean Clean Energy.

And that’s the bottom line.

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