Ascendant To Seek Relief From 60/40 Rule

October 1, 2012

In a filing to the Bermuda Stock Exchange, the Ascendant Group Limited gave notice of the Company’s intent, effective 22 October, 2012, to seek relief from the 60/40 rule.

The Companies Act was recently amended to allow for companies fitting certain criteria to apply for Government’s permission to have over 40% of their shares foreign owned.

Ascendant Group Limited is the parent Company of operating companies Bermuda Electric Light Company Limited (BELCO), AG Holdings Limited, Bermuda Gas & Utility Company Limited, PureNERGY Renewables Ltd., and inVenture Limited, as well as BELCO Properties Limited and BTS Limited.

In a letter to the Government of Bermuda’s Minister of Business Development and Tourism, the Company stated: “In accordance with subsection 113(8) of the Companies Act 1981, Ascendant Group Limited, whose registered office is located at 27 Serpentine Road, Hamilton HM 07, Bermuda, hereby gives notice of its intention with effect from October 22, 2012, to rely on the provisions of section 113(1)(cd)(i) of the Companies Act 1981 and to carry on business in reliance upon the provisions of section 114(1)(e) of the said Act. As such, Ascendant Group Limited hereby notifies the Minister that its shares are listed on the Bermuda Stock Exchange and that it is engaged as a business in a material way in the energy industry.”

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Comments (12)

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  1. Chart says:

    It’s sad that these institutions are slipping out of Bermuda hands. The BSX listing will eventually go too.

  2. Rockfish says:

    I wonder if it’s a Canadian company behind this move…

  3. Curious says:

    How can they let a government regulated monopoly go from the 60/40 rule?
    Sell it all to foreigners and watch our prices go up up up up up up up upppp

    • OBA (Only Brings Austerity) says:

      If its government regulated, doesn’t that mitigate extortionate price increases?

      • Portia says:

        No, it doesn’t. In a way, the cost of electricity IS Government regulated – BELCO has to get approval from Government for every fuel adjustment, and to raise the base prices. Our power costs have already risen extortionately, because the Government has allowed it to.

  4. zz says:

    Bank of Bermuda: sold
    Bank of Butterfield: sold
    KeyTech/Logic/BTC: looking
    Belco: looking

    Quite an accomplishment for the PLP: Bermuda’s four largest local institutions gone out of local ownership.

    I suppose the local insurance companies will be next.

    • OBA (Only Brings Austerity) says:

      And do you think this has been good for Bermuda or Bad for Bermuda. In most places, investment is a good thing. But according to you, we should just shut our doors and remains closed for business.

      Ridiculous

    • Verbal Kint says:

      Standing Strong for Bermuda.

  5. Al says:

    It’s not “relief”. They’re seeking a special exemption.

    This is a policy that will end in disaster for Bermuda.

  6. Y-Gurl says:

    Hmm I wonder indeed who the Canadian Company behind this move may be, maybe its the one they are already partnered with, and with all the inrush of capital they can buy even more local Companies without placing the cost of these companies onto the electricity consumer and maybe this is the capital that will allow for the link project…the plot thickens! and perhaps bla** & oops…the overseas investor might ensure the monopolistic energy Company has a budget process in place that allows for capital investment to replace their aging plant again without placing that burden on the consumer, we already pay to much for an unreliable and not very secure power service and should not be asked to foot any more bills!