0 thoughts on “CARIBBEAN STOCK REPORT 31 January to 4 February 2011

  1. From the basic article sounds similar to the banks holdings capital injections. Where the shareholder knew nothing or couldn’t challenge the share for capital exchange until sagicor has already signed on the dotted line. This will dilute the current shareholders earning and shares. Though if they add the same clause of no new issue of shares unless accepted by them i think shareholder be in uproar again. Also this ask the question why do they need the 200 million from the last finical report they seem to be on solid footing. are they planing to do a takeover bid of some companies ? or some other capital project some place else ?

  2. David, this surprised me, as Sagicor recently realized significant inflows from the sale of shares to the NIS (2009), the sale of its investment in ANSA McAl (2010) and the sale of its investment in LPH (2011).

    According to the article, IFC approached Sagicor, so IFC is presumably seeking investment opportunities. You may recall that IFC recently invested in Guardian Holdings of Trinidad (http://www.caribbean360.com/pr360/67284.html). Sagicor needs to have viable investment opportunities for the use of the funds or its performance will decline.

    Sagicor does not currently have any one shareholder with significant influence – at December 31, 2009, the NIS owned 6.5% and Republic Bank Limited owned 3.8%. $200 million could potentially give IFC the largest shareholding in Sagicor, though less than 20%, but we need more information on the allocation of the investment to common and preferred shares, as well as the share valuation for the transaction.

    The IFC investment may promote increased confidence in Sagicor, but, as usual, the deal needs to be fair to existing shareholders, especially the valuation of the share price for the transaction, which should look beyond the current state of the economy. The shareholders also need to be comfortable with a new shareholder, possibly with influence, simply due to its nature, that did not previously exist. The good news is that, unlike with the sale of the shares to the NIS, the Board will come to the shareholders. Finally, I am not aware of IFC’s policies and whether such would allow an eventual attempt at control.

    • Here is what Kammie Holder has posted on his Facebook Page. Kammie is a Guardian Life man!

      Guardian Life of the Caribbean was first to receive funds from IFC as a vote of confidence!

      Kammie explain this vote of confidence if Sagicor with its top notch Best Rating is performing?

  3. Sagicor has certainly done a number of interesting things in recent years. First there was the new share issue which has been challenged in court by one shareholder. The purpose of that share issue was not really spelt out.

    Now the company seems to need another round of financing.

    How sound is this company? Why does it need all this financing when it has not spelt out a growth program? Has its assets been more affected than we know?

  4. Sources are telling us Trimart is now 100% owned by Mcal as at January 1.Bizzy owns the buildings while Brydens, Leron Gibbs, RLSeale and other shareholders have all being bought out.
    The selling spree continues both by private and public companies.

    • Sagicor has been on the VOB news in recent weeks doing the PR thing in response to its slight rating downgrade. CEO Dowridge Miller attributes it to the sovereign risk of operating in countries in the Caribbean with struggling economies.

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