THE Government of Guyana received the highest price possible for its shareholding in Guyana Stockfeeds Inc.

This is according to Robert Badal, the CEO of Guyana Stockfeeds. In a letter which appeared in another section of the media on Thursday, Badal said at $25 per share, it is way over the $15 he was initially prepared to offer. “It is way over the local stock exchange last sale price,” he said.

He said that the total value for these shares was more than what he paid for 35% of the company when he first took over its management.  Badal said that the fact that no other buyer made any bid during an open tender, suggests that no one was interested in a minority stake in the company and that its value to a rational buyer was not there.

“Regardless of what valuation was done and by whom means nothing without a willing buyer,” he said. Following the administration’s advertisements in 2017, Opposition Leader Bharrat Jagdeo had accused the coalition government of being “in bed” with Badal who had secured a court order validating the reduction of government’s shares in GSL from 38 per cent to the current seven per cent.
The reduction, which occurred under the former PPP-administration, was first nullified by an order of the court which was later challenged and upheld by the High Court. Badal pointed out in the letter that he is not affiliated with any political party.” I received no favour from the government, all negotiations were above board and at arm’s length. All due process was followed. The government must be congratulated for negotiating this price on behalf of all Guyanese,” he said.

He added that “This is in stark contrast to the fire sale prices at which state assets were sold to cronies and friends under the former administration.” Recently, Minister of State Joseph Harmon disclosed at a post-cabinet press briefing that the offer to purchase government’s holdings of 5,437 ordinary shares at $25 per share, by Badal, the CEO of the Guyana Pegasus, was the only response to two separate requests for proposals; the last being published over the period October 29 to December 7, 2017.

“Cabinet approved the sale of the shares as proposed and authorised NICIL to complete the sale transaction,” Minister Harmon said. National Industrial and Commercial Investments Limited (NICIL) serves as a holding company and carries out the role as a custodian and overseer of the government’s shares and interests in subsidiaries and affiliate entities.