LPH acquires majority interest in DOMLEC

Light & Power, Barbados
LPH office building in Barbados

Light & Power Holdings Ltd. (LPH) of Barbados has acquired a 52% interest in Dominica Electricity Services Ltd. (DOMLEC) from WRB Enterprises Inc. (WRB) of Tampa, Florida.

This transaction follows an announcement on November 28, 2012 that LPH had signed a Letter of Intent with WRB for the acquisition.

DOMLEC is the sole electric utility for the Commonwealth of Dominica, serving 34,000 customers. The Dominica Social Security Scheme owns 21% of DOMLEC, with the remaining 27% broadly held by other investors.

“The acquisition of DOMLEC is consistent with our strategy to build a business of scale in the Caribbean,” said LPH Managing Director Peter Williams. “We believe our operational expertise coupled with that of the team at DOMLEC will create new potential for adding value to the benefit of customers in Dominica.  We look forward to working with the other investors, including Dominica Social Security Scheme, to ensure that DOMLEC continues to provide an excellent electricity service which is essential to Dominica’s economic development.”

WRB’s President, Bob Blanchard, Jr. stated that “WRB is proud of our association with DOMLEC, and with accomplishments at the company over many years. We are confident that LPH’s experience in the utility business will enhance the capacity of DOMLEC to serve its customers.”

LPH and WRB have prepared a continuity plan to ensure a smooth transition of control, with customer service and employee alignment as a priority.

LPH and WRB have also agreed that they will collaborate in the future on the development of new renewable energy projects in the Caribbean.

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58 Comments

  1. Not for us
    April 11, 2013

    Wasn’t it the DLP, which boasted that the party, when it come in Govt., would buy DOMLEC back from foreign entities and have it locally owned?

    Didn’t Dominicans blast Timothy, while in UWP, who sold to CDC? Now Timothy jump over to DLP, no problem no outcry. DOMLEC, after all those years of DLP, will still not be owned by Dominicans.

    Skerritt and DLP is making sure of that. Because two opportunities arose for DLP to have allowed local Dominicans ownership of DOMLEC, but awa. First WRB of Florida owned majority shares. Now LPH. Magwe sa DLP. Geothermal same thing.

    DLP rallied against corruption, now Dominica is witnessing the worst and more frequent, more audacious, overt and covert, corrupt practices. Protectors, defenders are well-placed.

    Dominicans are being fooled again and again and again. DLP told us Petro Caribe would reduce drastically electricity bills and fuel at the pumps. Lies. Lies. Lies. Fuel storage tanks for fuel – gas, diesel, not under Ministry/Minister of Energy, as if those fuels are not about energy. Minister of housing/water in control of Petro Caribe. Tell us why?????? Many do not even care if they are lied to or fooled again and again and again.

  2. Anonymous
    April 11, 2013

    EMERA the parent company in Canada is not going to settle for 52% of DOMLEC. They will eventually acquire every last share,paying twice the market value for each share . An offer that cannot be refused. Ask the Bajan people,employees and Government.

  3. April 11, 2013

    Hello and good morning my people. I am not against any foreign company investing in our companies. We just can’t have someone else controlling the majority stake in our companies because if that happen our voice will not matter and they will control us. I think the Government shouldn’t allow this deal unless we control Fifty One(51 %)percent of the company.

    • Jay
      April 11, 2013

      Why would an investor put his money into Dominica if he does not have control of that investment? it is difficult enough to attract foreign investment as it is. Go and ask IDA.

      • Lady Day
        April 11, 2013

        He would put his money in to make a profit not to control the future of a country.

      • Hype
        April 11, 2013

        You said: “it is difficult enough to attract foreign investment as it is.” ..Give all the thanks to Domlec. Who would want to invest in a country where electricity rates are so high…well except for buying the light company that sets those exorbitant rates..lol lol

      • April 11, 2013

        Jay.

        Hi. Am not saying an investor should not have some control when they invest in our companies. I am just saying that our Government should not allow a foreign company/ investor to own the controlling interest in a company like DOMLEC. If we don’t have the controlling interest in our own public companies then we won’t have any voice and we will be dominated by foreigners. Investors invest if they feel they can make money and not if they hold the controlling interest in the company in which they invest.

    • Holiday Island Boy
      April 11, 2013

      EMERA the Canadian parent company, will not settle for 52% for long. They will eventually acquire every last share , paying as much as double the market value for each share. An offer that cannot be refused.Ask the Bajan shareholders, employees and Government.

  4. Wake up!
    April 11, 2013

    Is the Dominica Government asleep? Then someone needs to wake them up. This is absolutely crazy!!

  5. Jimi Hendrix
    April 11, 2013

    Nothing makes me more cynical than when a company does something and they say they are doing it to benefit customers. Companies are only interested in customers in as much as it advances their interest. Companies modus operandi is to maximize shareholder value. Customers are just a means to an end.

  6. Morihei Ueshiba
    April 11, 2013

    LPH, welcome to Dominica, the nationalize cry belong to a few socialists pigs, not the majority, we welcome your business interest and hope you can add to better electrical services in Dominica as we are a PRO-Business country! :mrgreen:

    • Lady Day
      April 11, 2013

      @Morihei Ueshiba. A way u com fram, Misses? Ur views soun alian. U know -farrin!

  7. Anonymous
    April 11, 2013

    I totally support Skerrit’s investment in LIAT but he should have invested in DOMLEC as well instead of the State Palace. THAT would have been leadership!

    Who are his retarded advisors? Or is he so ignorant he just doesnt listen to anyone?

    UWP selling to CDC was bad enough and will forever remain in the top 5 examples of gross Governance and one of the key reasons I could never vote for them but considering the disastrous business environment plaguing Dominica to not take control of one of the major contributors to business failure and therefore job creation is just shocking. I dont even know how to process this.

  8. mrkub
    April 11, 2013

    Very bad news for dominica more trouble starteI’md by uwp.

    • Anonymous
      April 11, 2013

      Lol. so uwp started and their decision could be reversed – government could not offer to buy back the shares? Lol

  9. Rastar-Marn
    April 11, 2013

    Hey Skerro as Chief Financial Officer could you please Tell the Dominican populous what was the VAT on that Sale???

    Cause that’s where Value Added Taxes should really charged!!!

  10. Yes I
    April 11, 2013

    Caricom. single market!

  11. April 10, 2013

    labour right that in power now for 13 years and you bleam uwp for a little 4 years they stayed in power skerrit could buy it he in power long enough he leave it to sell shame on him.

  12. Wow
    April 10, 2013

    Autri spoke some crap on monday I did point out the need to natinalize our key resources and utilities how many times these nut heads have to be instructed?The Dom-in-cans populace by extension.
    Saqway gas! Saqway culeve!Now a Bajan company is doing what we should be doing for ourselves.
    Now the same Tim an accountant by profession(now in health) balancing the health budget? was instrumental in selling DOMLEC during the solid teams (now gaseous)reign. Now Dumbs- in -cans voted him again. Had it not been for being a real patriot not those on the airwave blowing steam and are afraid of their own shadows.I would sit back and let the chinese take over sooner than they will eventually do see the royals weare forming.

  13. aye
    April 10, 2013

    government investing in liat but not taking majority ownership of our electricity supply… magweh sa

  14. Ambassador A
    April 10, 2013

    Prudent management is the deal here. Remember DOMLEC is a private Company and Private Companies shareholders sell to the best bidder at their own determination if government of Dominica wanted to acquire Domlec they would have to prove to the Shareholder whose shares they are seeking to buy that they can sustain over and beyond the Services of the Company etc.let’s just say its a pity that Dominica has No other investor like social Security who could have bought over the shares of WRB –People open your eye this has nothiNg to do with you and the political party you vote for at the time when the Ousted UWP sold it made more economical sense to do so as the nation could not Sustain the Growth of Domlec on its own with a Growing Customer base and Declining resource base, its really dis heartening to read comments. Like the person who calls themselves “Truth” cause whether you like it or not there are things a nation can sustain with growth and things they must Let go DOMLEC and DOWASCO Both had to Go

    • Malatete
      April 11, 2013

      With respect, DOWASCO is fundamentally different from DOMLEC. Although incorporated as a company (by and act of Parliament in 1989) DOWASCO is entirely owned by the Govt. of Dominica.

  15. lolz
    April 10, 2013

    I will never understand why eddo sell Domlec in the first place. Govt should nationalize Domlec no questions asked

    • Wow
      April 10, 2013

      I have been repeating this ad infinitum sometimes when i poGov’t and supporters saying it is libelousst truths DNO won’t post em they would have it waiting for deleting due to fear of legality which is not in the cases i put forward.Am no 1/2 baked chicken nor a johnnycomelately.As you said they invest in the wrong areas sothy and their advisors like juliecoco have to be asleep, stupid,nuts or wicked as the most likely reason not (A) nor (B) not (C) so it has to be (D)
      That’s why I stated earlier all these suckers should be jai ltogether in one big cell. If Eddie and Tim could be in the same party then part they can be in jail together so can Charlo and Austrie and the whole 9 yards. just mix them p in the calabouse.no bail nor trial cocoa tea pig’s snout and red beans 7 days per week pay back time for crimes against the people.Someone said amonth ago ” I want my revenge”So would be mine.
      No trial date until i die in office lol poor skerrit .

    • April 10, 2013

      Good question to ask Timothy while you labor in misery. Also ask Sorrel why did they sit by and allow a foreign company to buy our utility company twice under his nose.

    • Morihei Ueshiba
      April 11, 2013

      Nationalize are u crazy? Chavez is dead. This is not Venezuela.

    • Anonymous1
      April 11, 2013

      Where have u been. Its almost a decade Domlec was sold by UWP for 21milliion, it was then sold under labour for 15 million now again its sold under Labour for less again. Sold twice by Labour but still blaming UWP?

    • Anonymous
      April 11, 2013

      This does not make sense. A government’s duty is not to own businesses but to regulate and govern. Government’s roles has to be foremost to regulate these services with the interest of the consumer at the fore and creating incentives whereby more investors and small business can thrive in the country.

  16. profiler
    April 10, 2013

    52%…what is the $ value?

  17. April 10, 2013

    I had hoped that the Government would have stepped in and purchased the shares or at least an interest so as to stop control going outside of Dominica.

    • no way
      April 11, 2013

      your dream may come true

  18. o'lord
    April 10, 2013

    why do i take a sent of something stinky in the pipeline of that geo.project.
    the fun have just begun.

  19. Doc. Love
    April 10, 2013

    In time to come not only will the Chinese have mowcho econimical power in Dominica,but also the Bajans. The boyz in red political anthem comes from Barbados, it is alleded that Skerrit’s political adviser comes from Barbados.The antiquated man comes from Barbados. The Labor Party pollster comes from Babados. The first meeting of the Chinese and Skerrit was in Barbados.

  20. Malatete
    April 10, 2013

    Soon I expect a tussle between the Govt. and the new majority shareholder in Domlec. They currently buy the diesel for their St. Lucia operation from Hess and there is nothing that says the are obliged to buy from Petrocaribe – at the very least they will drive a hard bargain. What is more, they also are in control of the Barbados electricity supply. By 2016 the natural gas pipeline from Tobago is expected to be in place and LPH will benefit from that relatively cheap, and very clean fuel. There is nothing to stop them importing liquified natural gas from Trinidad to Dominica in the mean time,feeding directly into the Fond Cole power plant and, again bypassing the fuel storage facility at Jimmit. Exciting times ahead! I’ll be sitting on the side-lines watching how “millions” Austrie is going to handle this wily customer. Uncle Chavez would turn in his grave.

    • IPO
      April 11, 2013

      Malatete if you fast forward to 2016, our Dominican Geothermal will be on stream and we will be producing our own Renewable Energy Source

      So don’t jump for joy for bad things to happen to us…now LPH or who ever has to buy energy from our Domincan Made Energy….

      So no need for HESS or Trinidad

      How about that

      • Malatete
        April 11, 2013

        IPO, for the record:
        – when Roosevelt Skerrit signed the agreement with West Indies Power at the Fort Young hotel in July of 2008 he stated that a 15 megawatt plant would be in operation by the end of 2010.
        – Tania Green of GIS reported on 20 July 2012:”Dominica could have a 10-15 megawatt power plant in operationby 2014 Prime Minister Roosevelt Skerrit told parliament earlier this week” – by the best will in the world, do you see that happening?
        – Following a visit to Guadeloupe in Jan. of this year, Mr. Blackmoore “was adament that Dominica will be producing and exporting geothermal energy by 2015” (after an earlier date of June 2013 previously quoted by him – see DNO 21 Jan.2013).
        The truth is that nobody knows for sure whether the project in the Layou valley will eventually be a succes, less so when the exploitation of this energy source can start. It is even less predictable than the completion date for the Pont Case-Hatton Garden road, which after multiple delays Mr. Blackmoore insisted would be completed by the end of last year under the threat of stiff penalties for the contractor. There is a deafening silence on this now and the Minister knows better than to predict yest another date.
        Last but not least, I can not see how Domlec could be forced to purchase energy from West Indies Power, certainly not by a Govt., which owns only 10% of WIP’s equity, although I’m sure they will reach an agreement when/if that power source becomes available.

      • IPO
        April 11, 2013

        @Malatete Read Below…I will attach the link if you think our Dominica Geothermal is a joke….DNO never shared the detail of this meeting…but learn

        Carl Howell, Acting Chief Economist at the CDB, argued that the CGF can foster the development of a robust policy environment which, in itself, can lead to stronger development outcomes for Caribbean people. He further opined that research shows that countries with stronger policies are able to sustain growth and improve economic resilience. This, in his view, must be one of the goals of the Caribbean region.

        Participants also heard a detailed presentation from Senior Infrastructure Economist Migara Jayawardena on the buzz word in Dominica today – Geo-thermal. He presented a strong case for the consideration of geo-thermal as a viable economic growth opportunity for Dominica to support regional integration by becoming an energy hub in the region.

        http://www.worldbank.org/en/news/press-release/2013/03/15/cgf-dominica-growth

  21. from no where
    April 10, 2013

    Why doesn’t the government buy DOMLEC back

    • Wow
      April 10, 2013

      should ah wouldah they wicked and dottish.The sad thing is you peeps know the truth but keep the BS going,

  22. Dominiquen
    April 10, 2013

    Domlec should be Nationalised!!! :twisted:

    • Malgraysa
      April 10, 2013

      It was and it did not work!

      • Hype
        April 10, 2013

        Sorry @Malgrasa…it worked so well the powers-that-be were desperate for $ to pay civil servants they sold it for $21 mil, which did block a few holes…but put us where we are today, paying thru the nose by greedy business men.

        You-all just need to nationalize and subsidise by closing red clinic to help.

    • Truth
      April 10, 2013

      It was already a national company and Eddo and them decided to sell it therefore every time I see that light bill its a constant reminder why I can never, never, ever vote UWP again. :cry:

      • __________________
        April 10, 2013

        @ Truth If only you were not a fool you would also have stated the number of opportunities this regime got to purchase it.That’s why you should take the light bill to the Red Clinic. Dress in red, and you also have to go down on your knees with your hands stretched out.

      • April 10, 2013

        that is sooo true.

      • yes i
        April 10, 2013

        that is no reason to vote

      • lolz
        April 10, 2013

        AMEN

      • Tt
        April 10, 2013

        and that is the truth and nothing but the truth. Bad managers making bad business decisions

      • Country Man
        April 10, 2013

        the man that structure the deal during UWP is now in the labour gov’t. who is to say that labour would have dealt with domlec differently.

      • Chains
        April 10, 2013

        Truth you are so right those greedy UWP leaders who put us in this situation the Government should buy Domlec and let the people own shares in the company they are letting Barbados get rich on Dominicans were the sleeping or get paid under the table

      • truth response
        April 10, 2013

        Ok fine. Point one who was the finance minister and the time. Point two what about the 300 miiiiilion austrie boast about. Point three what about daddy chavez could he not help us get it back like he help us get cheaper fuel. Point four that 27 million state palace could that loan not help us get it back. Point five the 12 million dollars for the abbitour from chavez could that not help us to get it back and there is so much more points to outline to you so thats why we have to get rid of labour and get serious people who knows how to run a country and not those road runner and cayote.

      • Holiday Island Boy
        April 10, 2013

        Mr Chains, Barbados get rich off Dominicans? Neither Barbadians nor the Barbados Government own any shares in Light and Power Holdings (LPH), it is solely owned by Canadians, sir.
        And by the way,LPH and BL&P Co Ltd are two different entities. BL&P like Domlec is owned by LPH

      • maindesk
        April 10, 2013

        Truth…The main person behind the sale was Julius Timothy a minister now in the DLP are you then still going to vote DLP?

      • awa wi
        April 11, 2013

        hope u doh never vote for labour either because they had the opportunity to buy it back and they did not. fifteen years now labour dere and allyu still dere about workers. u know wat fifteen years is? your baby in high school now wi boy. if u tell me a man do something wrong and you can do better well prove it doh keep on blaming d man and u self doh doing @#$%.time for labourites to stop using workers as scape goat for all tings dat not working in dca and take responsibility for their own mess. petro caribe not suppose to make bills cheaper na? doh even mention that the government collecting all their vat on allyu too with domlec check your light bill and see how much u paying d government for using lights at least skerro cud have leave electricity without vat to ease up d poor man wi but i guess its a tale of cut your own tale to feed u. that being said i hope u never vote dem red ants dat biting hard dere.

      • Anonymous1
        April 11, 2013

        U forget you labour allow it to be sold twice? R u going to still vote for that party?

      • Anonymous1
        April 11, 2013

        TRUTH? U have taken for yourself a name that does not match the garbage u have written.

      • April 11, 2013

        I totally agree with you. Besides they undersold DOMLEC.

      • rocky raccoon
        April 11, 2013

        Hey partner I quite agree with your viewpoint 100%

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