Singapore in race for Grand Bahama Port Authority

The $120 billion investment arm of the government of Singapore is the front-runner to buy the Grand Bahama Port Authority in the wake of the peace accord between Sir Jack Hayward and the family of Edward St George.
The Nassau Guardian can reveal that the huge conglomerate Temasek Holdings, the investment arm of the government of Singapore, has a “loose first option” on any deal involving the 100 percent of port authority now that peace has broken out in the ownership battle, with both Sir Jack and the St George’s committed to working together to find a buyer.

Temasek, an economic powerhouse, is in fact the silent partner The Nassau Guardian revealed back in December last year that was working with the flamboyant Joe Rosetti and his Mid-Atlantic Projects to purchase Sir Jack’s stake the Cayman Islands-based parent company – Intercontinental Diversified Corporation (IDC) – which accounted for 50 percent of the port authority.

However Guardian Business now understands that Mid-Atlantic under the new landscape Mid-Atlantic Partnership is no longer involved, with the two sides of the port coming together to offer 100 percent of the authority to the market.

A source close the negotiations said: “Essentially we now have fresh negotiations however Temasek has a loose ‘first look’ if you will as they had already been working with Sir Jack, but anything which is agreed has to be put before the St Georges and the government of The Bahamas before moving forward.

“As I say this is a new landscape which is 100 percent of the port, which is much better for an investor, any partner coming in doesn’t want to be buying 25 percent or 50 percent, they want the whole thing so they can move forward.

“This is a new chapter, Temasek and Singapore are still there but it is equally possible that somebody else may come forward now that the entire port authority is up for sale. All of the shareholders will now work together on the deal and there are a lot of bridges to cross. However this is fantastic for Freeport and Grand Bahama.”

Temasek has the highest credit-rating in the world possible with a prized Moody’s credit rating of Aaa, and a Standard and Poors rating of AAA, the highest rating any investment firm can achieve. It is a global player on a huge scale it has an investment portfolio of around $120 billion employing hundreds of employees across the world. It also has one of the highest ethical reputations of any company in the world, donating hundreds of millions of dollars each year to good causes including handing out hundreds of international scholarships and donating millions to cancer research and renewable energy.

Guided by an independent board, it operates autonomously on commercial principles to maximize long-terms returns. It’s total shareholder return since inception 35 years ago is more than 16 percent compounded annually.

Its investment strategy centers around four themes:
•Transforming Economies – investing in industry sectors that correlate with the economic transformation of the country

•Growing Middle Income Populations – It finds opportunities in companies and industries whose growth is fueled by the increasing purchasing power of middle income populations

•Deepening Comparative Advantages – Tapping the potential of competitively-positioned companies

•Emerging Champions – Identifying companies proving to be best-in-class, be it regionally or globally

On its website Temasek proclaims: “We believe in fostering an environment that is inclusive and promotes ownership, while offering opportunities for our people to realize their full potential. Our people benefit from a balanced Temasek experience – one that enriches our professional and personal lives, including those of our families, and makes an impact on our community.

“We have a diverse and inclusive team, with some 350 staff coming from 22 different countries across the world – Australia, China, India, Japan, Korea, Lebanon, Mexico, Namibia, Pakistan, Singapore, Thailand, the US and Vietnam to name a few. More than 40 percent of our senior management team comes from outside Singapore. About two thirds of our people are below the age of 40, and more than half have prior experience in the financial services industry. Close to half of our professional staff are female.

“The knowledge, skills and experiences that diverse people bring to Temasek help to open our minds and promote robust conversations within a collegial workplace. Such exchanges can only further enhance and deepen the Temasek experience.”

The Nassau Guardian attempted to contact Joe Rosetti several times but with no response.

By Scott Armstrong
The Nassau Guardian Business Editor

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Mid-Atlantic Projects’ top man today said the end of negotiations between his company and Sir Jack Hayward was an “amicable” one.  The announcement that Sir Jack was negotiating with Joe Rosetti to sell his stake in the Cayman Islands-based parent company – Intercontinental Diversified Corporation (IDC) – which accounted for 50 percent of the port authority, caused considerable controversy.

But now with the peace accord between the St George’ and Sir Jack, those negotiations are at an end, with dealings now taking place with Rosetti’s previously silent partner Temasek.

It marks the end of a bumpy road, with Rosetti, the senior managing director of MAP, at times claiming frustration over delays in paperwork – claims denied from within Sir Jack’s organization.

Rosetti told The Nassau Guardian: “It is true that Mid-Atlantic Projects in no longer involved in the port deal negotiations. The two parties have made amends, that is step one for them and we have no desire to be an impediment to making that become a reality.

“We are no longer pursuing the deal. Sir Jack had other interests and wanted to go in another direction.  We wish them luck in their efforts. The split is an amicable one.”

By Scott Armstrong
The Nassau Guardian Business Editor

http://www.facebook.com/note.php?note_id=381929601311

The potential purchaser of Sir Jack Hayward’s 50 per cent Grand Bahama Port Authority (GBPA) stake yesterday confirmed it would like to acquire 100 per cent of Freeport’s quasi-governmental authority, having met with a beneficiary of the late Edward St George’s estate in New York last week.

Joe Rosetti, senior managing director of Mid-Atlantic Projects, answered: “Yes” when asked by Tribune Business if the group wanted to purchase the remaining 50 per cent stake held by the St George estate, enabling it to take complete ownership control of the GBPA and its Port Group Ltd affiliate.

However, he declined to confirm whether he had met Sarah St George, one of the late Mr St George’s daughters, to discuss the situation and any prospective offer Mid-Atlantic Projects might make to the estate.

Tribune Business had been tipped to the meeting by informed sources, but Mr Rosetti said yesterday: “I’d prefer not to comment. I don’t deny it, and I don’t admit it.”

The outcome of the discussions, and the St George estate’s reaction to any Mid-Atlantic Projects offer, is unknown. Tribune Business attempted to contact Ms St George twice in New York, but despite leaving detailed messages and contact numbers for her, the call was not returned.

Some sources close to the situation suggested she would be reluctant to comment, probably wanting to consult with other family members and beneficiaries, plus the St George estate’s trustees and legal advisers.

Fred Smith, the St George estate’s Bahamian attorney, indicated to Tribune Business last week that his clients did not want to sell to whoever was behind Mid-Atlantic Projects, viewing them in the same vein as British banker Roddie Fleming, who had also attempted – in vain – to acquire the Hayward family trust’s GBPA interest.

Mr Rosetti yesterday indicated to Tribune Business that Mid-Atlantic projects was interested in acquiring the St George estate’s stake if all the litigation surrounding the latter’s GBPA ownership dispute with Sir Jack could be “set aside”.

“I just want peace, an amicable introduction and no legal complications,” he added.

When Tribune Business pointed out the concerns of many in Freeport as to whether the deal was real, and the uncertainty surrounding Mid-Atlantic Projects’ backers and plans for the city, Mr Rosetti said the group “would not risk our money” if they had doubts over their ability to finance and close the deal with Sir Jack.

Asked about the Government’s reaction to Mid-Atlantic Projects’ prospective purchase of Sir Jack’s stake, Mr Rosetti said: “They have been notified of our interest and desire to meet with them. I have not got a reaction [from government] directly.”

Meanwhile, Tribune Business can reveal that Sir Jack, accompanied by GBPA/Port Group Ltd chair Hannes Babak, president Ian Rolle and vice-president Ginger Moxey, met with 30 GBPA licensees at one of his Grand Bahama homes on Tuesday night.

The purpose of the meeting, according to those present, was to attempt to enlist licensee support for the Mid-Atlantic Projects purchase, plus backing for Mr Babak in his work permit battle with the Government.

Sources at the meeting said Sir Jack provided few details about the buyer, other than extolling their virtues. He added that the deal was supposed to close in the 2010 first quarter, and that Mid-Atlantic Projects had paid a deposit already.

In addition, Sir Jack was said to have expressed confidence that there was little the Government could do to stop the sale, given that he was selling his stake in Intercontinental Diversified Corporation (IDC), the Cayman-domiciled holding company for the GBPA/Port Group Ltd.

Sources said he also railed against Hutchison Whampoa and the Government, saying the former had been willing to sell the GBPA’s regulatory and licensing functions back to the Government for a minimal price.

Meanwhile, Sir Jack Hayward’s children and grandchildren, in a statement released last night, said they opposed their family trust selling its GBPA/Port Group Ltd stake to Mid-Atlantic Projects. And they are preparing to take legal action to block the sale.

Local Bahamian counsel have been retained to commence Supreme Court proceedings urgently for the appointment of a Judicial Trustee, whose role would be, once so ordered by the Supreme Court, to take control of the trusts and administer the trusts’ estate for the benefit of all the beneficiaries, including resolving all disputes and ensuring that the sale of the shares would only be completed after the approval of the Bahamas Government is first obtained,” the Hayward children said in a statement.

“The Hayward Family Trust’s beneficiaries have been shocked to learn that the trustees have been compelled by strong-arm tactics to yield to the wishes of Sir Jack, as settlor of the trust, and enter into a transaction attempting to dispose of the trust’s interest in the Grand Bahama Port Authority and the Port Group.”

Further indicating the deep family split, the Hayward children also backed the Government’s decision not to renew Mr Babak’s work permit as being “in the best interest of the Bahamas as a whole”.

“The beneficiaries of the Hayward Family Trusts (except Sir Jack himself) are not in support of the purported sale of the shares held by the Hayward Family Trust to the Mid-Atlantic Group as announced, and firmly believe that an early resolution of the long-running and unfortunate dispute with the St George family should be the first priority and would serve the best interests of all. The beneficiaries would encourage Sir Jack to join them in pledging their support to work with the St George family to this end.”

By Neil Hartnell
Tribune Business Editor

http://www.tribune242.com/12242009_StGeorge_business_Page1-lead

A global conglomerate with an investment portfolio far in excess of $50 billion, – and with one of the best credit ratings in the world possible – is the silent partner in the bid to buy the Grand Bahama Port Authority, The Nassau Guardian can reveal.

While the identity of the behind-the-scenes partner of Mid-Atlantic Projects is being kept a closely-guarded secret, Guardian Business has learned it is a global player on a huge scale, employing hundreds across the world.

It also has one of the highest ethical reputations of any company in the world, donating hundreds of millions of dollars each year to good causes in the communities in which it is based, including handing out hundreds of international scholarships and donating millions to cancer research and renewable energy.

The conglomerate has an excellent credit rating with both Moody’s and Standard & Poors.

The Nassau Guardian understands that the conglomerate has an investment portfolio far in excess of $50 billion, and over 20 years has established a reputation for excellence.

A Guardian source said: “This is probably about as good as it gets, they are the creme-de-la creme and have international respect, they are one of the most successful and ethically sound investment houses in the world.

“And as far as financial security goes you could not ask for more, it is like all Christmases have come at once.”

The Nassau Guardian can also reveal today more detail about Joe Rosetti, the managing director of Mid-Atlantic Projects, the partner company at the forefront of direct negotiations to purchase Sir Jack Hayward’s shares of the GBPA’s parent company Intercontinental Diversified Corporation (IDC).

As well as being the senior managing director of MAP, Rosetti is also a founding light of international security firm SafirRosetti, a globally renowned consultancy which works with corporations, governments and individuals to develop and implement solutions to security, investigative, intelligence and general management challenges worldwide

Prior to forming SafirRosetti, Rosetti was the Vice Chairman of Kroll Associates, one of the world’s leading risk consulting companies which for more than 30 years, has helped companies, government agencies and individuals reduce their exposure to risk and capitalize on business opportunities.

As Vice Chairman, Rosetti had responsibility for Corporate Security/Crisis Management, which provides industry and professional organizations with preventive measures to combat corporate and financial crimes.

From 1971 to 1987 he had worldwide responsibility at IBM for security programs in physical security, investigations, personnel security, trade secret protection, information asset security, real and movable and financial asset security and Department of Defense Security.

In his capacity as IBM Security Director, Rosetti was the chief industry representative serving as Vice Chairman of the Secretary of State’s Overseas Security Advisory Council.

Rosetti was a member of the U.S. National Chamber of Commerce Crime Reduction Panel and was Staff Director for the Conference of the National Commission on Criminal Justice Standards and Goals, a member of the private Security Task Force to the National Advisory Committee on Criminal Justice Standards and Goals and Chairman of the American Management Association’s Council on Crimes against Business.

Prior to joining IBM, Rosetti was the Northeast Director for the Law Enforcement Assistance Administration of the U.S. Department of Justice and a Special Agent, Group Supervisor, and Special Assistant to the Assistant Commissioner for Compliance in the Intelligence Division, U.S. Treasury Department.

By Scott Armstrong
The Guardian Business Editor

http://www.bahamasissues.com/showthread.php?t=27465&page=1

The prospective purchaser of Sir Jack Hayward’s 50 per cent stake in the Grand Bahama Port Authority (GBPA) yesterday said it expected to “substantially grow” the group and Freeport if it successfully closed the deal, indicating that while there was “a lot to be done” it hoped to complete early in the New Year.

Joe Rosetti, its senior managing director, confirmed Tribune Business’s revelations earlier this week that Mid-Atlantic Projects had “entered into an agreement to purchase all of Sir Jack Hayward’s interest in the GBPA/Port Group Ltd”.

He added: “The transaction is subject to the normal due diligence and approvals required of such transactions. Our goal is to have the transaction completed in the late first quarter or early second quarter of 2010.”

It seems likely that Mid-Atlantic Projects is acquiring a 50 per cent GBPA stake from Sir Jack, not the 75 per cent he has alleged he has owned during the ownership dispute with the late Edward St George’s estate.

In an interview with Tribune Business yesterday, Mr Rosetti said that the deal with Sir Jack was “at a very preliminary stage”, with only a sales agreement signed. Much remained to be done, he said, adding: “The due diligence has to take place, and then there has to be a closing.

“I’m hopeful all will be positive, and we’re looking forward to a nice closing and moving on, with all this being very beneficial for all concerned.” Closing was likely to take place “around the first of the year”.

Tribune Business failed to locate any information about Mid-Atlantic Projects via a prolonged Internet search, but Mr Rosetti told this newspaper that the company had previously been heavily involved with El Paso Corporation’s failed bid to establish a liquefied natural gas (LNG) terminal and pipeline at Grand Bahama’s South Riding Point.

“We are a company that has been set up for a specific purpose, and that is to invest in energy-related real estate,” Mr Rosetti told Tribune Business. “We had attempted to get involved with the South Riding project in the Bahamas before, and the Port Authority opportunity came up.

“We are now focused in on this. We have the resources from a private trust fund.”

Describing the South Riding Point project as “some you win, some you lose”, Mr Rosetti said it was “a little premature” to provide details on Mid-Atlantic Projects’ plans for the GBPA/Port Group Ltd, and the investment it planned to bring and the jobs that would be created.

“We’ve not decided on the organisation, but we expect to grow it substantially for the benefit of the Bahamas. We think it’s [Freeport and Grand Bahama] got a lot of potential that’s not been explored to date,” he added.

“We’re very focused on the Bahamas, and were interested for a variety of reasons when the Port Authority came up. We, along with our partners, felt this was a good opportunity.”

On Freeport’s attraction for his group, Mr Rosetti said: “I think it’s proximity to the US, I sense a real commitment to grow it, the business opportunity, and there was a willing person who wanted to sell.”

Asked about the Government’s reaction to the potential purchase of Sir Jack’s stake, and where Mid-Atlantic Projects had reached in the approvals process, Mr Rosetti told Tribune Business: “The Government is aware of what we have done to date.”

Asked whether Mid-Atlantic Projects had been in touch with its prospective joint venture partner, the late Edward St George’s estate, Mr Rosetti replied: “I’d prefer not to comment on that.”

He did add, though: “We only want to get involved in an amicable environment. We want to do things in a friendly way, and not get involved in any sort of controversy.”

When asked by Tribune Business whether Mid-Atlantic Projects’ plans included Hannes Babak remaining as GBPA/Port Group Ltd chairman, Mr Rosetti skirted the issue, saying the question was “premature” because there had been no discussions on staffing or personnel issues yet.

By Neil Hartnell
Tribune Business Editor

http://www.tribune242.com/business/12172009_Port_business_Page1-Lead

Mid-Atlantic Projects LLC announced today that it has received the approval from the Government of the Commonwealth of the Bahamas, Office of the Prime Minister, for the development of an oil transshipment facility, Liquid Natural Gas terminal and an oil refinery.

The $8 Billion development will be the largest energy investment ever in the Bahamas and will be done in phases; with the first phase an oil transshipment facility estimated to begin development by first quarter 2011.  It will have a cost of $600 million and is estimated to be completed by 2014 with a nominal storage capacity of 20 million barrels.

The storage facility will be used as a holding area for forwarding crude oil deliveries to North America and as a “break-bulk” point for transshipment operations.

Mid Atlantic Energy announces that Mustang Engineers has completed a detailed conceptual study of the project.  This study provides documentation important to Mid Atlantic Projects’ interest in developing an oil transshipment facility, liquid natural gas terminal and oil refinery in the Bahamas.

Mid Atlantic Projects announces it has made its initial application to the Bahamas Government for an oil storage facility and the construction of an oil refinery and/or LNG terminal.

Mid Atlantic Projects initiates its interest in developing an oil storage, liquid natural gas terminal and oil refinery in the Bahamas.