Shareholders of conglomerate Guardian Holdings Ltd have approved a deal for a member of the World Bank Group to invest $473 million (US$75 million) in the local insurance group.

Guardian Holdings announced yesterday that the "final step" to closing the proposed US$75 million investment by the International Finance Corporation to buy GHL equity was taken when the GHL shareholders unanimously approved the transaction at an extra-ordinary meeting on Wednesday.

"IFC's purchase of approximately 12.8 per cent of company shares at $16 per share, which represents a 22 per cent premium to the share price's 90-day moving average price, means GHL will benefit from an injection of capital that will improve cash flow, expand its capital base, and reduce its debt obligations," Guardian Holdings said in a statement. "Additionally, the move will support and facilitate the future growth strategy across the group."

Guardian Holdings chairman Arthur Lok Jack expressed confidence that this transaction would benefit the GHL group, its shareholders and other external stakeholders as well as the wider community.

Operating out of Washington DC, the IFC provides investments and advice to build the private sector in developing countries, its website says.

The agreement includes converting an IFC current US$50 million loan into common equity while at the same time investing US$25 million of new capital into GHL, the company said in an earlier statement in May. —Curtis Rampersad