Harold Brady, chairman of Castelo Holdings, has not said publicly why the company has not made the mandatory offer. - File

The Jamaica Stock Exchange (JSE) suspended trading in the shares of Caribbean Metal Products Limited on Thursday, saying new owners Castelo Holdings BV had failed to comply with the rules of the exchange.

The JSE had given Castelo up to February 6 to make a mandatory offer to minority shareholders of CMP, triggered by the Curaçao incorporated company's 79.66 per cent acquisition of the inactive manufacturing entity last August.

CMP last traded on October 1 at a flat price of $4.25 per share on a 3,000 unit transaction.

The JSE did not say in its release on Thursday what other options were available to it - Castelo is not a listed entity - nor whether it had the legal authority to force compliance.

JSE General Manager Marlene Street-Forrest was not immediately available for comment, but the JSE release suggests that the suspension would remain in effect until Castelo makes the offer.

JSE Chairman Curtis Martin told the Financial Gleaner he was not in a position to comment.

Harold Brady, attorney-at-law and chairman of Castelo Holdings, was also said to be out of office. It was unclear yesterday what options were open to remaining shareholders of the stock.

"I don't know what to do," said one investor, who requested anonymity. Brokers were equally unwilling to speak, saying it was likely a matter to be resolved in the courts.

"It's a legal matter and stock brokers can only speak of it only from a trading perspective," said Kevin Donaldson of Pan Caribbean Financial Services.

susan.gordon@gleanerjm.com