GPL equity offer being tested
Stabroek News
April 23, 2004
The offer for a US$35M equity injection into the power company for 50% ownership has only to be circulated to a few potential investors to test the market, adviser to Prime Minister Sam Hinds, Maxine Nestor indicates.
Nestor says based on the response from these few companies, a decision will be taken on how to move forward on the issue and whether it would be refined and sent out to the wider public.
The offer was also sent to one insurance company, which is expected to act as the lead investor to see the formulation of the widely-held consortium of financial institutions to invest in the utility.
The offer document, which Nestor says is a draft, is also still being reviewed within the government.
Stabroek Business, in last week's edition, reported on the government's bid to re-privatise the power company and provided details of what Nestor says was the latest draft of the offer document.
In that offer, the government was seeking the interest of a consortium of widely-held financial institutions including the National Insurance Scheme, pension funds and commercial banks to come together and raise US$35M. The government, in the draft, says it would re-work the rate of return formula and allow for a guaranteed return of treasury bills plus three per cent to the investors. It would also forego dividends for 10 years to minimise the effect of rate-of-return on tariffs.