The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

Solomon’s Mines owner yesterday confirmed it was “definitely” seeking to sell the luxury goods retailer, with several potential buyers understood to be competing for the acquisition.

Mark Finlayson, whose family owns the five-store chain, told Tribune Business that they were talking to several parties, but declined to go into detail or identify them.

“We are in the midst of talks with several parties,” he confirmed. “Definitely, we are seeking to sell it [Solomon’s Mines]. I don’t want to comment further on it.”

Mr Finlayson was responding after Bay Street sources informed this newspaper that a deal to sell Solomon’s Mines to rival luxury goods retailer, Diamonds International, had been consummated on Wednesday.

While that information is seemingly not quite accurate, Tribune Business understands that Diamonds International is among three groups vying to acquire Solomon’s Mines. It is thought a deal could be announced imminently, possibly by month’s end.

It is unknown who the other two groups are, but the Finlayson family will likely welcome competition between the potential buyers, as this will maximise the purchase price received.

The sale move also appears to represent an abrupt about-turn, as Mr Finlayson in June denied to this newspaper that his family was seeking to sell Solomon’s Mines to Diamonds International or any other suitor.

“We’re going to give the new management team an opportunity to do their thing,” he said at the time.

“There is a pretty good team there, and they are all working together. The recession has taken its toll, but we’re staying afloat and doing OK.”

Solomon’s Mines, like many businesses has been hit hard by the recession, and shrunk its retail store numbers considerably since being acquired by the present ownership in 2004-2005.

The Finlayson family acquired Solomon’s Mines, previously a division of Solomon Brothers, from that group and its principal, Martin Solomon.

The group has three remaining stores on Paradise Island, one on Bay Street and another in Palmdale. It is unclear what any purchaser will be gaining, other than store locations, an inventory and staff, plus taking out a competitor in a crowded market.

Any Solomon’s Mines sale would seemingly represent a further ‘estate planning’ move by the Finlayson family and its head, Sir Garet ‘Tiger’ Finlayson.

The Finlaysons and their Associated Bahamian Distillers and Brewers (ABDAB) vehicle previously sold their equity interests in Burns House and Commonwealth Brewery to Heineken in 2010-2011, in a deal thought to be worth around $125 million.

And Tribune Business recently reported how the Finlayson family had “watered down” their stake in ABDAB to below a majority shareholding threshold, and issued preference shares in the company in a bid to resolve the $4.7 million liability owed to City Markets pension plan beneficiaries.

This, together with the injection of capital by new investors, had reduced the ABDAB equity interest held by General Bahamian Companies (GBC), the Finlayson family-owned vehicle, from 70 per cent to around 49 per cent, Mr Finlayson had confirmed.

“In order for the [pension fund] deal to happen, further investment had to be made in the company by other shareholders,” he explained. “Monies had to be injected, and we’ve been watered down.

“It’s a larger Board, not as closely run by my family, but that’s fine, as we want to spend less time involved.”