The Tribune

By DENISE MAYCOCK

Tribune Freeport Reporter

dmaycock@tribunemedia.net

THE Coalition of Concerned Citizens is urging Bahamian shareholders in ICD Utilities not to sell their shares and allow a foreign company to have 100 per cent ownership in a vital utility infrastructure in Grand Bahama.

Pastor Eddie Victor, CCC convener, believes that complete ownership of the energy sector by Emera would not be in the best interest of Grand Bahama and its residents.

He appealed to Bahamian shareholders not to give in to the strong-arming tactics of the Canadian-based energy giant, which wants to buy-out their shares in the Grand Bahama Power Company (GBPC).

“We say to the Bahamian shareholders do not sell your shares, vote ‘no’ at the upcoming AGM for ICD Utilities,” appealed Pastor Victor.

CCC is strongly opposed to Emera’s pending bid and transaction to acquire the shares of Bahamian shareholders of ICD Utilities, and describes the move “as a hostile take-over.”

Pastor Victor said many ICD Utilities Bahamian shareholders had contacted the CCC expressing their concerns with the way Emera is going about the entire process.

He said shareholders are upset and experiencing great anxiety and distrust with Emera, which owns some 80 per cent of the shares in GBPC.

In September 2008, Emera announced the purchase of 25 per cent of the Grand Bahama Power Company Limited through its acquisition of 50 per cent of the shares of ICD Utilities Limited of the Bahamas. In December 2010, Emera acquired an additional 55.4 per cent interest in GBPC, bringing Emera’s direct and indirect interest in GBPC to 80.4 per cent.

According to Pastor Victor, the GBPC is one of two power plants in the Bahamas in which Bahamian citizens have an ownership interest. The other is the Power Plant in Spanish Wells, Eleuthera, he said.

“If a foreign company is allowed to take ownership of Bahamian owned shares in ICDU then Bahamian ownership in the energy sector will go backward,” he said.

Pastor Victor said if Emera is so eager to buy-out Bahamian-owned shares, then the shares are more valuable than anyone thinks.

He explained that ICD Utilities’ Bahamian shareholders were to receive dividend payments annually, but it has not been the case under Emera’s management of the GBPC, with shareholders receiving only a few annual dividend payments.

Pastor Victor stated that before the Emera/GBPC rate application was approved by the regulators, the Grand Bahama Port Authority, in January 2016, the main power plant on West Sunrise Highway, was operated and managed by Emera Utilities, a separate company from the GBPC.

He said the business model incurred more operational costs, resulting in less profit for the shareholders.

He also questioned claims about the reduction in power rate by Emera and suggested that while there was less than one cent decrease in the all-in price, there had been no reduction in the base rate.

Pastor Victor stated that the CCC was formed with the purpose of being an advocacy group that would work for the betterment and social justice for citizens.

The Tribune reached out to a GBPC public relations spokesman, but calls were not returned up to press time.

Last week, Tribune Business reported Emera’s documents make clear that the ICD Utilities ‘buy out’ will only be consummated if a majority of minority, non-Emera investors vote in favour of it at a special and annual general meeting (AGM) on November 8. If the vote is favourable, then 75 per cent of ICD Utilities’ investors, including Emera with its 60 per cent-plus interest, must back it.