October 5: Business Briefs

FRIDAY, OCT. 5:

Foreign capital needed

Wayne Furbert, Minister of Business Development and Tourism said Bermuda can expect foreign investment to spur growth in Gross Domestic Product (GDP) and provide jobs following passage of the Companies Amendment Act 2012.

Minister Furbert said since the Act had been passed two companies have applied for exemption of the 60/40 rule including Key Tech in September and most recently the Ascendant Group.

Passed in July, the Companies Amendment Act 2012 allows firms in a “prescribed industry” and listed on the Bermuda Stock Exchange, or another designated exchange, to apply for a licence to access more capital overseas than the current 60 per cent Bermudian ownership requirement allows.

Prescribed industries include telecommunications, energy, insurance, hotel operations, banking and international transportation services (ship or aircraft).

Minister Furbert said in a press release: “This Government is committed to enabling foreign investment in Bermuda’s companies that will drive development and innovation in our infrastructure, technology and capital market as well as create new employment opportunities.

“Bermuda may be another world but we are part of the global economic community in which borders restricting capital investment have become all but irrelevant. We must allow our local companies access to foreign investment that will benefit everyone in Bermuda.

“And clearly, the amended legislation is working as several companies have applied for exemption during the past two months.”

Waterloo Investment HL loses $44.7 million

In a filing to the Bermuda Stock Exchange (“BSX”), Waterloo Investment Holdings Limited released its financial results for the year ending March 31, 2012.

The Company is an investment holding company incorporated in the British Virgin Islands. WIHL owns the British Caribbean Bank Limited, a financial services business in the Turks and Caicos Islands and, through various subsidiaries, substantial other investment interests in the Turks and Caicos Islands, principally through secured loans.

The company also holds an approximate 25 per cent interest in a successful and market-leading edible oil processing and distribution operation in Latin America and a 50 per cent share in a company which operates an international open shipping and company registry business in Belize.

Waterloo Investment HL  also has an investment in the form of secured loans to the largest port in Belize.

WIHL was demerged from BCB Holdings Limited on October 26 of last year. 

The financial information has been prepared as if WIHL had been in existence as at 31 March, 2011, and for the entire period 01 April, 2010, to 31 March, 2012.

This is in compliance with accounting standards which require this presentation due to the existence of the same controlling shareholder in both WIHL and BCB Holdings Limited at the date of the demerger.

For the year ending March 31, 2012, the company reported a net loss of $44.7m (2011 net income - $11.1m) and net loss per ordinary share for the 12 months of $0.45 (2011 net income – $0.11) primarily due to non-cash provisioning without which WIHL would have shown a profit.

The company is focused on creating value from its portfolio of assets and believes at current valuations WIHL can take a long-term perspective.

At 3March 31, 2012, the total assets of WIHL were $503.8m ( March 31, 2011 — $567.5m) and net assets were $256.5m (March 31, 2011 — $295.7m).