Massy Holdings seeks approval for 20-for-one share split

Massy Holdings is seeking approval for a 20-for-one share split to increase its issued share capital to 1.9 billion shares.

In a statement it said it will ask shareholders to agree to this at the January 21 annual general meeting.

The group said the action would make more shares available to more investors as it cross-lists on the Jamaica exchange. This comes as the group announced increased revenue and before-tax profit of $11 billion and $929 million.

The 20-for-on share spilt seeks to increase each shareholders’ shareholdings by 20 times the number of shares held prior to the share spilt.

“The market price of each share will simultaneously become 20 times less than it was prior to the share split with no proportionate change to shareholders’ ownership.

“Upon completion of the share split, the company’s issued and outstanding ordinary share capital will increase from 98,969,227 ordinary shares to 1,979,384,540 ordinary shares,” the group said.

Group chairman Robert Bermudez said the share split is meant "to support the success of the cross-listing and to ensure continued accessibility of the Massy share to all retail shareholders."

CEO Gervase Warner said in creating value for its shareholders, the group's third-party revenue grew by nine per cent and profit before tax from continuing operations improved by 41 per cent to $929 million. Profit after tax increased by 68 per cent to $678 million.

In 2021 earnings per share, it said, increased by 13 per cent from $7 to $8.02 and share price also increased to $82.50 at the end of September, when compared to the start of the financial year.

He said, “This is a key profit measure that demonstrates that our strategy is working, because as we continue to narrow the focus of the group by divesting non-core assets, it is important that our main portfolios and lines of business remain as the primary engines of growth.

“Moreover, our total return to shareholders increased from 12 per cent to 44.15 per cent. We continue to deliver enhanced value to our shareholders as TRS has been excellent for the past few years, return on equity is improving and our upcoming cross-listing in Jamaica in 2022 will increase trading activity, expand the base of shareholders, and give international investors better access to hard currency from their trades.”

Warner added in 2021 the successful divestments of non-core assets unlocked capital to optimally reinvest in strategic priorities and pursue growth plans.

On the group's performance amid the covid19 pandemic, Bermudez said despite supply chain disruptions it continued to "assure critical food and oxygen supply throughout the region."

"We contributed to societies in which we operate with disaster relief efforts, laptops to less-privileged families to support remote learning, contributions to campaigns to address vaccine hesitancy and in TT we were one of the lead organisations in the largest-ever private/public sector collaborations to operate mass vaccination sites to accelerate government's efforts to vaccinate the population."

Bermudez said the group will continue to work with regional governments to support "the critical needs, recovery and growth of our economies."