Harold Brady, an attorney-at- law, gave up chairmanship of CMP Industries on April 18, two months after the company's suspension by the Jamaica Stock Exchange. - File
Harold Brady has resigned as a director of CMP Industries Limited, a listed company suspended by the Jamaica Stock Exchange based on the failure of new owner Castelo Holdings BV, which bought the company last year, to adhere to takeover rules.
Brady, who was also chairman of CMP, gave up his directorship in mid-April.
He told Wednesday Business that the resignation was a 'normal' event in the course of business, and would offer no further explanation for quitting the board.
CMP Industries Limited was acquired August 16, 2007 for an undisclosed sum.
Castelo now owns more than 16 million or 80 per cent of the company's 20.3 million issued shares, which traded at $4.25 on the JSE around the time of acquisition and maintained that price up to suspension in February.
Stock exchange rules
The stock exchange rules require that once a company acquires more than 50 per cent of a listed company, it is bound to make a mandatory offer to the remaining minority shareholders at a price no less than that paid for the majority stake, and within a month of the takeover.
Castelo, a Curacoa registered company, now owns 80 per cent of CMP Industries, a former manufacturing entity in the business of metal products which now makes its earnings from rental of its old factory space.
The company made nine-month profit of $5.2 million at December 2007.
Replacement
Upon the sale of the company, all the existing directors on the CMP board were expected to be replaced by persons nominated by Castelo Holdings.
Brady was initially reported as chairman of Castelo, but JSE general manager Marlene Street-Forrest has now clarified that he was only listed as a director and chairman of CMP Industries.
Street-Forrest said no decision has been made about future actions against the listed company, which remains on suspension.
According to information from the JSE, CMP's other directors on file are Chester Peterson, Peter Wilson, and Marsha Stephens.
sabrina.gordon@gleanerjm.com
