The Bahamas could be well on its way to becoming a shareholder society if Bahamas Food Services (BFS) is indeed sold to U.S. food supplier Sysco, according to the acting chairman of the Free National Movement (FNM). Darron Cash is encouraging Prime Minister Perry Christie not to miss out on this opportunity, as reportedly no decision has been made on the proposed sale. His comments come as negotiations between the two companies are underway. He believes the sale would provide the perfect opportunity for The Bahamas to deepen the ownership society model that was laid out by the Ingraham administration.
"Last time I looked at it, there was no decision made by Prime Minister Perry Christie with respect to the sale of Bahamas Food Services to Sysco. As others have suggested, I think this is a tremendous opportunity for Christie and his government to follow the model laid down by the Ingraham administration. It's a wonderful opportunity to deepen what has already started of building this ownership society in The Bahamas," Cash noted. Last month, former BFS head of operations and now owner of Phil's Food Services, Phil Lightbourne revealed to Guardian Business that if the government approves the deal, shares would be offered via Bahamian Depository Receipts (BDRs).
Lightbourne said that the sale to Sysco would mean more jobs at BFS, increased job security for those currently employed with the company and the addition of a reputable company willing and able to pay its taxes and fees to the government. He also urged that the sale would significantly expand the product offerings available to Bahamian consumers, while also reducing the cost of such goods because of Sysco's size and capacity. However, the deal has also met some opposition.
Rupert Roberts, owner of the Supervalue and Quality Supermarkets chain, said leaders should focus on keeping the money here. He told Guardian Business that the move would "destroy a lot of what we have" and make it difficult for other wholesalers to compete. If approved, Cash pointed out that BFS' sale would be similar to what occurred at Commonwealth Brewery. In March 2011, the company launched its $62.5 million Initial Public Offering (IPO). That figure represented 25 percent. Heineken International B.V. is holding the remaining 75 percent of the shares.
"When the proprietors of the brewery wanted to sell their interests, the government had no problem with that. The requirement is you must sell a portion of these shares to the Bahamian public. When you get into the issue of wholesale business in The Bahamas, this is an excellent opportunity for Christie to use the same model and we encourage him to go down that same road," he shared. This is reportedly not the first time a deal has been on the table for the sale of BFS to Sysco. According to Lightbourne, a deal for the sale was approved by the then government in 2005. However, due to the time it took for the whole deal to conclude, Sysco exited the process.
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