BEL majority owner, Fortis of Canada, now owns 100% of hydro energy producer BECOL.
Yesterday Fortis closed a $7 million deal with the Social Security Board to buy their 5% share in BECOL, the Belize Electric Company. In February of 2001 Fortis had bought Duke Energy's 95% holdings in BECOL for US $62 million.
Today a release from the Social Security Board called the sale wise because with an up-front profit of $2.32 million dollars it is a 49.6% return on their investment of $4.65 million back in 1993. And for some perspective that $4.65 million purchase price included $1.34 million for 400,000 shares in BECOL and the remaining 3.34 million dollar was the controversial fee paid to the Courtenay law firm.
This was 10 years ago and by the Social Security Board's own admission that 49.6% breaks down to an average of a little under 5% return per annum over the life of the 10 year investment. This is mere chum if we are to compare the 5% from this investment in BECOL to the Social Security Board's investment in BTL which yielded an average annual interest of about 30%.
Fortis has majority ownership of BEL with 68% but Social Security today said they will continue to retain their 25 percent holdings in that company.