The Government of Grenada is selling two thirds of its shareholding in Cable & Wireless Grenada Limited.
The shares will be sold to the Grenadian public in accordance with Clause 9(e) of the Shareholder Agreement between the Government of Grenada and Cable & Wireless.
A total of eight million (8,000,000) shares, representing 20% of the total issued shares of the company, is involved in the sale.
Grenadians both locally and abroad are entitled to participate in the divestment programme.
This move comes after negotiations with and the support of Cable and Wireless International which is the major shareholder in Cable & Wireless Grenada, the leading telecommunications provider on the island.
The divestment is part of the Government's fiscal reform strategy, developed more than two years ago, and supported by the IMF and World Bank.
The Government will retain four million (4,000,000) shares of 10% of the issued shares of Cable & Wireless Grenada Ltd.
The sale of shares in one of the largest industrial companies in Grenada provides an excellent opportunity to the Grenadian public to hedge their savings against inflation.
Historically, the basic share value has increased over time. Grenadian investors should also experience a rise in income, as the dividends paid by Cable & Wireless Grenada have been consistently higher than interest paid on savings and time deposits. Government expects this trend to continue.
Prime Minister Dr. the Right Honourable Keith Mitchell says, "The Government is pleased to give Grenadians the opportunity to purchase shares in Cable & Wireless and so maximise their income and enhance their capital."
Chief Executive of Cable & Wireless Grenada, Mr. Ian Blanchard says, "Cable & Wireless is supportive of the Government's move to divest a major portion of its shares to the Grenadian public and remains committed to partnering with the Government and people of Grenada in achieving our mutual goals."
The sale of shares will commence in late February 2008 at which time a financial summary including price of shares will be released.
(The above is a joint release from Cable & Wireless and the Grenada government)
