Cable Bahamas proposing share split

Communications provider Cable Bahamas Ltd (CBL) is planning to propose a three-for-one share split of its ordinary shares that it says will allow more Bahamians to buy into the company.

The proposal will be tabled at the providers’s annual general meeting next month.

If it is approved by the company’s shareholders, the price of Cable Bahamas’ share price of US$14.51 would be reduced to a third, making them more affordable for potential investors. Existing shareholders will receive three shares for every share they own.

Cable Bahamas, which is listed on the Bahamas International Securities Exchange (BISX) has been publicly traded since its initial public offering in 1994. It purchased all foreign-held shares in 2010, becoming 100 percent 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 the 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 realize 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.”

The stock split will only impact the ordinary shares of the company, and no other class of shares will be affected. -(CMC)