CUC aims to raise US$48M in share sell-off
(CNS): Caribbean Utilities Company is giving its shareholders a chance to buy more shares in the power company to raise US$47.8 million to refinance existing debt and for general corporate purposes, a release from CUC said. Existing shareholders can subscribe on 1 September and if the full rights offering is not taken up, CUC has entered into a stand-by purchase agreement with Fortis Energy (Bermuda), a subsidiary of Fortis, the controlling shareholder.
CUC had a fall in profit during the second quarter of this year due to the impact of the COVID-19 pandemic on its major commercial clients and will be deferring its annual summer base rate increase until January. Nevertheless, Richard Hew, CUC president and CEO, said the company was in good shape to weather this health crisis.
“CUC’s ability to absorb lost revenues while facing increasing costs speaks to the financial stability of the company at the outset of this pandemic,” he said in the release.
Meanwhile, as shareholders look to benefit further and the company raises millions of dollars, workers at CUC are donating part of their salaries to people in need. In line with a recent move in the civil service, staff at the power company have authorised for monthly deductions from their salaries to be donated to the Needs Assessment Unit (NAU). The “Because We Care” employee initiative was created to help those who have been hit hardest by the health crisis.
“The employees at CUC are always looking for ways to help those less fortunate,” said Pat Bynoe-Clarke, CUC’s manager of corporate communications. “COVID -19 has impacted all of us, but those of us who can give back are happy to do so.”
Tamara Hurlston, Director of NAU said the country has a social responsibility to assist one another as she encouraged other corporations and individuals to follow CUC by helping those still being affected by the pandemic.
Category: Business, Community, Local News, utilities
Here we go again. Employees of another private entity donating their hard-earned monies to support others in need but we do not hear any of the politicians declaring to donate some of their salaries.
These overpaid politicians are better at wasting money so I am not surprised that they are not willing to make such a gesture of goodwill.
Did it ever occur to you that some politicians actually are assisting but they don’t feel the need advertise to the world that they are being charitable?
Stop assuming they are doing nothing just because they are not posing on CNS or Cayman Compass saying that they are doing something.
Generally, when management believes that the stock is overvalued, they issue shares. When they believe a stock is undervalued, they buy back shares.
Management is making a rational decision in this case. Buyer beware!
Maybe they just want to raise capital like the article said.
How come this is only available to existing shareholders, or Fortis?? Why can’t other people participate?
Isn’t CUC a publicly traded company? Seems stock should be available to the public.
It’s a normal shareholder rights issue like any other – prevents dilution to existing shareholders as of record date. Shareholders are not required to exercise these rights, but they do get first crack. Fortis is a major shareholder.
A company wants to build something and sells some stock to raise the money, how horrible! Sometimes it is hard to believe that Cayman is a financial center when you read these comments.
What’s the purchase price for the existing shareholders?
Sounds like they are printing money, which seems par for the course in Cayman.
One would think with the giant hands that the CUC has in the pockets of everyone who is hooked up to their grids in Cayman they would have more than enough money,
Compare the stock price of CUC and Fortis and then tell me hat the problem is here.
Note how they didn’t declare a loss in the second quarter simply a fall in profits…
I am so proud to see CUC staff joining our Civil servants in donating some of their salary to the NAU.
Thank you CUC. I will now buy your shares.
How? Not offered to you…
How do you know they are not an existing shareholder, or did you miss that part of the article?
Why is Cayman not run on 100% solar energy. Who or what is stopping this from happening.
Planning permission is required and all solar powered structures still need to be connected to CUC’s grid (wires network) so that CUC can “buy” any unused energy generated to supplement the energy their systems generate.
…the sun doesn’t shine all the time.
The required battery or other energy storage systems to make this work do not exist yet.
This is a false statement. You can install solar or any other generation for self-consumption with Planning permission. It is only if it could connect to the grid that you need to enter an agreement with CUC.
So are they diluting current shareholders?
I think I missed something. I would expect the company selling more shares to be bad for current shareholders but this article is implying it is positive for shareholders.
Do not buy their snake oil.
They are leveraged to their eyeballs in debt.
CUC is Cayman’s best kept secret Ponzi scheme.
If SHTF, they cannot cover. FACT.
Do not buy.
I agree with 10 40 there’s a lot of people that need food for their family and not getting it, and don’t talk about nau helping, that’s for friends and family only, you know me and I know you, government need to take better care of their people who are hungry, people who don’t have a way to make a dollar for them self, people who don’t have nowhere to turn, we don’t even know what’s going on or where we stand, we need work that we can go back to that we don’t have to wait for government to give us hand out god bless the cayman island
Electric Utilities are natural monopolies especially in a market as small as Cayman.
They need to be regulated to allow a fair and reasonable return on capital.
This isn’t a business where the outcome for consumers would be improved by adding two new providers.
If you have a problem with CUC’s returns or pricing the people to blame work for CIG, not CUC.
How much per share they are selling for ?
Time for CUC to get out of the fossil fuel business and stop meddling with regulators to perpetuate their monopoly using fossil fuel guzzling generators. Fossil fuel prices trend up and have always done so. What are these increasing costs due to that CUC is whining about? Renewable forms of energy have flatter price curves and are immune to OPEC’s price fixing or catastrophe in the Middle East. Our government has become hooked on the drug that pays them dividends but it’s the wrong drug. CIG need to consider rehab, and then start making money off green technologies.
Cuc needs competition
God bless the hard working men and women of CUC!
That’s comedy gold !
CUC has never cared about anything except making a profit. Whatever ‘losses’ they have endured during the pandemic will be made up in the months and years ahead. They NEVER lose.
CUC are the only company on the island who’s shareholders are guaranteed to make money.
FACT.
Seems like shareholders worldwide are guaranteed to make money. Oh stock market going down, print 12 trillion more… Money is so common.. They just keep printing it!
They didn’t say they made a loss only a fall in profits!
People on work permits, who are working are getting assistance from every entity there is. A proper investigation should be made into their devious behaviour. The people who are in dire need are not getting the support.
Welcome to Cayman, Bobo.
It’s how we roll.
You have receipts for these claims?