Thursday, February 22, 2018

Did Mr Lee-Chin make a US$66 mill GHL mistake?*


The expose by minority shareholder activist Peter Permell of the legal ramifications of the May 12, 2016 shareholders’ agreement with regard to the takeover of T&T’s Guardian Holdings (GHL) by Jamaica’s NCB Financial Group (NCBFG) has certainly thrown the proverbial cat among the pigeons.
Permell’s revelations have the potential to add US$66 million to NCBFG’s cost of acquiring GHL, if the offer price is appropriately amended­. And if the offer price is not amended, there may be a sell off in the share price of NCBFG, which increased by 182 per cent between May 12, 2016, and January 22, 2018. The skyrocketing in the NCBFG share price is partly as a result of the market anticipating the consolidation of GHL’s anticipated US$62 million 2018 profit plan into NCBFG.

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