Dec 2009 Financial News

PCFS purchase gains $1.1b for Sagicor Life

Dec 09, 2009

Sagicor Life Jamaica (SLJ) last month paid its parent -- Sagicor Financial Corporation (SFC) -- $2.53 billion for an additional third share in Pan Caribbean Financial Services (PCFS), but the local life insurer has seen the value of its investments jump 43 per cent.

On Monday, SFC disclosed to the Trinidadian stock exchange that it sold its 181 million shares in PCFS -- approximately one-third of total PCFS shares in issue -- for $14 a share on the Jamaica Stock Exchange (JSE).

The transaction increased Sagicor Life Jamaica Group's ownership in PCFS to 86 per cent and enhances the strategic possibilities available to PCFS and SLJ.

At the time of sale -- November 11, 2009 -- PCFS was trading at $15.55 a share, but "the value of PCFS was appraised through an independent valuation and the agreed price was subject to an independent fairness opinion", according to SFC.

Relatively low volume trading on the JSE -- 15,454 share a day, on average -- since the sale increased the price of PCFS stock to as high as $21.50 before it settled at $19.98 a share yesterday.

At last traded price, SLJ's recent purchase gained $1.1 billion in value, while its total 86 per cent stake would up to yesterday be valued at $9.4 billion.

SFC said it sold its stake in PCFS as "part of an internal realignment of the Group's interests in Jamaica".

A special Transaction Committee comprised of independent directors of the SLJ Board was appointed to approve and oversee the transaction.


Source:
Jamaica Observer
Wednesday, December 09, 2009

http://www.jamaicaobserver.com/business/sagicor