By Stanley Ugagbe
Barbados has expressed willingness to sell some of its LIAT Shares to Antigua and Barbuda, Prime Minister Gaston Browne, has revealed.
While disclosing the development, Gaston Browne noted that Barbabos Prime Minister, Mia Mottley said her government is willing to give up “a significant portion” of its shares.
The Antiguan government had earlier made a formal offer to acquire Barbados’ shares in LIAT through a take-over of the liability of Barbados to the Caribbean Development Bank from which monies had been borrowed to purchase planes for the airline.
Gaston Browne who disclosed the development while speaking to his local radio station, Pointe FM on May 18 stated that Prime Minister Mia Mottley has responded to the proposal made by Antigua and Barbuda.
He said “We got a response from the distinguished Prime Minister of Barbados, Mia Mottley. She indicated in a letter that they would want to retain at least 10 percent and that is certainly desirable because we want to make sure that we pursue that model of shared benefits and shared burden, so the idea is not to divest Barbados of all of its shares.”
He continued that “The intent is not to exclude any country from participating in LIAT. In fact, as far as practicable, we would want to broaden the shareholding of LIAT to include as many Caribbean countries as possible”.
However, Mottley has declined to give details of the development. She only confirmed to newsmen through her press secretary, Roy Morris that she had responded to Browne’s letter by inviting the Antiguan government to “send a team to Barbados to talk”.
Morris added that “In the meanwhile, Barbados will not prejudice those talks by making any further statement on the matter”.
On his part, Prime Minister Browne has confirmed that a three-member negotiation team had already been identified – Lennox Weston, Sir Robin Yearwood and a representative from the Ministry of Finance.
The Antiguan leader further noted that they were ready to commence negotiations as soon as Barbados has its own team ready.
It is important to note at this juncture that Barbados at the moment has 49 per cent of LIAT shares and Antigua and Barbuda 34 per cent. Purchasing some of the Barbados’ shares connotes it would take over from that country as the majority shareholder.
However, the Antiguan Prime Minister, Browne expressed uncertainty over the outcome of the negotiation.
He said “I am not too sure what the negotiating would result in – whether or not our shares will increase by 10, 15 or 20 per cent. I do not want to anticipate the final outcome of the negotiations. It is probable that Antigua and Barbuda could end up in a majority position, but it does not necessarily mean that we will hold on to majority position. We may want to encourage other countries within the Caribbean to come on board and even divesting some of those shares”.
While stressing that the move was in his country and LIAT’s best interest, Browne said “It was about doing the practical thing to ensure the survivability of LIAT and to protect the Antiguan economy.
“The reality is we have about 400 workers here – LIAT employees – and for us to have a situation in which the airline is collapsed and with the potential of moving the headquarters to another country, I mean, that would be catastrophic
“So for those who may have taken my account to the people of Antigua and Barbuda as a personal attack, as a form of one-upmanship or shouting across the Caribbean or bigging up my chest, there’s no such thing. It is just a practical solution to an emerging problem,” he said.
