CARIBBEAN STOCK REPORT 21 to 25 March 2011
Blogging, Caribbean, Caribbean Stock Report, Caricom News, Department of Management Studies, UWI, UWI Cave Hill
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We understand T&T, Jamaica and Bahamas newspapers are carrying this analysis. Can we say the same for Barbados? Maybe it maybe pointing to some financial immaturity on the part of Barbadians?
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And here was I thinking that we did not need anyone else. We must protect our borders.
Why should we care about their stock exchanges?
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@Anonumus
It is your right to trivialize the matter with your red herrings.
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Actually i seen some of these posted in the Business authority david
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@anthony
On a routine basis?
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Not as often as here.
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Sagicor is expected to declare a dividend in April. Hopefully, Sagicor will do better than the pitiful four cents per share seen in recent times. Sagicor’s directors have depressed the dividend so much that the stock has lost it gloss. From $0.14 total in 2008 to $0.08 total in 2010, along with that private sale to the NIB, the stock seems to be struggling to gain confidence. Directors, demonstrate your confidence in the future of the Company and increase the dividend. Hopefully, executive compensation is trending with the dividend amount.
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@A.Freeman
Any information available on executive compensation for Sagicor?
Any comments on OCM stock taking a hit?
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David, unfortunately, I do not have any of that information. Here is something from Sagicor: http://www.sagicor.com/go.php?page=News&sec=5
SAGICOR FINANCIAL CORPORATION
For Immediate Release: March 31, 2011
NEWS RELEASE
SAGICOR & IFC REACH AGREEMENT
Sagicor Financial Corporation (Sagicor) and the International Finance Corporation (IFC), a member of the World Bank Group, today signed an agreement that will result in IFC investing up to $100 million in Sagicor, subject to Regulatory and Shareholder approval.
The investment, IFC’s largest-ever in the insurance sector, and its largest investment to date in a single Caribbean entity, consists of up to $20 million in common shares, or about a 4 percent stake in Sagicor, and up to $80 million in convertible and redeemable preference shares.
Mr Stephen McNamara, Group Chairman of Sagicor said, “This level of investment by IFC, a highly reputable international institution, is an extreme message of confidence in Sagicor, a tremendous vote of confidence in its management, its operations and its direction. But perhaps of even greater importance is the fact that IFC has agreed with us that our existing Shareholders should be afforded the prior opportunity to invest in the company as part of this transaction.”
The Chairman is of the view that the benefits of the partnership and investment in the wider communities will become evident as SFC wisely deploys the funds raised for growth within the region. “I am quite sure that when our Shareholders are fully apprised of the details of this agreement, they will support it and, in so doing, unlock myriad opportunities for further collaboration between our two organisations,” he said.
Lars Thunell, IFC Executive Vice President and CEO, said, “Insurance gives people the security they need to grow businesses and invest in the well-being of their families. This partnership between IFC and Sagicor will promote greater access to more types of insurance products in the Caribbean and beyond to Latin America.”
This is the second step in what is expected to be a partnership that has the potential to redound to the benefit of the Stakeholders of both organisations and the communities they serve. It is no coincidence that both IFC and SFC have similar missions – to improve the lives of the people in the communities in which they operate.
Sagicor will now seek all applicable Regulatory approvals, and will then put the agreed terms of this investment to all Shareholders in General Meeting for their approval.
Sagicor is a leading provider of financial services in the Caribbean. Operating in 22 countries, including the UK, USA and Latin America, Sagicor has total assets in excess of US $4.5 billion. The Sagicor Group offers a wide range of products and services including life insurance, annuities, and group and individual health, and has a policyholder base of approximately 600,000. Sagicor is a widely-held publicly-traded company with over 37,000 Shareholders, and is listed on the stock exchanges of Barbados, Trinidad and Tobago and London.
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Contact Info: Melba Smith, Vice President – Corporate Communications, Sagicor Financial Corporation, Tel: (246) 467-7574, Fax: (246) 426-7907
E-mail: melba_smith@sagicor.com -
http://www.sagicor.com/go.php?page=News&sec=5
In Washington:
Julie Ziegler
Phone: (202) 473-0128
E-mail: JZiegler1@ifc.orgAdriana Gomez
Phone: (202) 458-5204
E-mail: agomez@ifc.orgIFC Makes Largest-Ever Insurance Investment, Providing $100 Million to Barbados-Based Sagicor
Washington, March 31, 2010—IFC, a member of the World Bank Group, agreed today to invest up to $100 million in Barbados-based Sagicor Financial Corporation to bolster market confidence in the insurance industry and to expand insurance services in the Caribbean.
The transaction is IFC’s largest-ever in the insurance sector and will consist of up an investment of up to $20 million in common shares, or about a 4 percent stake in Sagicor, and up to $80 million in convertible and redeemable preference shares.
The investment demonstrates confidence in the long-term future of the Caribbean insurance industry following several market failures and a tightening of credit arising from the 2008 global economic crisis. The transaction will also allow consumers, especially the poor, to plan and invest in the future by helping to expand Sagicor’s presence in the Caribbean and eventually in Latin America.
“Insurance gives people the security they need to grow businesses and invest in the well-being of their families,” said IFC Executive Vice President and CEO Lars Thunell. “This partnership between IFC and Sagicor will promote greater access to more types of insurance products in the region.”
“We view this investment, and indeed the level of investment by IFC, as a message of confidence in Sagicor,’’ said Sagicor Chairman Stephen McNamara. “The benefits of this partnership and investment to the wider communities will become evident as Sagicor deploys the funds raised for growth within the region.”
The transaction is part of IFC’s strategy to expand its investment activities in the insurance sector, with the goal of increasing availability of insurance products that address individual needs, such as health insurance, and access to insurance products for smaller businesses, microfinance institutions, and agribusinesses. The effort involves partnering with global and regional insurance companies that are focused on expanding in emerging markets.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in developing countries. We create opportunity for people to escape poverty and improve their lives. We do so by providing financing to help businesses employ more people and supply essential services, by mobilizing capital from others, and by delivering advisory services to ensure sustainable development. In a time of global economic uncertainty, our new investments climbed to a record $18 billion in fiscal 2010. For more information, visit http://www.ifc.org.For more information on Sagicor, visit:
http://www.sagicor.com -
@A Freeman
Thanks, what do you think this injection means, it is huge!
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David, I have not heard of their plans. However, when such an investment is accepted, it has to be put to work to avoid a drag on the earnings per share and the dividend per share, so I suspect an acquisition of some sort or possibly the development of some of the “residential” land of Barbados Farms Limited. There is also the main agricultural component of Barbados Farms… At least something is about to happen.
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@ A Freeman
I have the same question as David. I became aware of this a while back and wondered what was behind it.
The blogmaster invites you to join the discussion.