Oct 2008 Financial News

Jamaica Money Market Brokers Limited - JMMB sells minority interest in CMMB

Oct 16, 2008

The following is a release received from Jamaica Money Market Brokers (JMMB)

Re: JMMB sells minority interest in CMMB.

JMMB is pleased to announce that it has successfully sold its minority shareholdings in the CMMB Group of Companies, in a sale to the majority shareholder CL Financial for a price of JAD$ 3 B or US$41.37 million. The transaction has yielded a substantial gain to JMMB which will be reflected in JMMBs second quarter results. Discussions between the parties commenced early in 2007, and the sale transaction was consummated at the end of September 2008.

JMMB Group CEO Keith Duncan said “we have enjoyed a mutually profitable relationship with the CL Financial Group. The CMMB project has been a win win for both parties, with JMMB realizing JS$3 billion on the sale of an investment that cost us JA$112 million, after a period of just 8 years.”

In rolling out its business diversification strategy, JMMB decided to drive the process through entities in which JMMB had a controlling interest or managerial control only. With this sale, JMMB will drive its regional diversification efforts in Trinidad through its 50% ownership in IBL (InterCommercial Bank Group), which JMMB acquired in 2005 with full management control. In 2007 JMMB acquired 80% interest in JMMB BDI America in the Dominican Republic which enabled it to further expand their regional diversification strategy.

This sale further positions JMMB strategically as it boosts its capital in current market conditions.

JMMB Group Chairman, Dr. Noel Lyon added “This is another example of how the JMMB diversification strategy has worked for the Group over the past ten years. JMMB remains committed to its Vision 2025 and to being the market leader for Caribbean and Central American asset classes for both the international and domestic markets.”

About CMMB

CMMB was formed in 1999 as a joint venture between Jamaica Money Market Brokers Limited (JMMB) owning 45% of the shares and Clico Investment Bank (CIB), and CL Financial together owning 55%. Caribbean Money Market Brokers (CMMB) is the first, full-service brokerage house in Trinidad & Tobago offering investments in debt as well as in equity. CMMB was launched in Trinidad in August 2000. JMMB had invested J$112 million in this joint venture in 1999. Over the last 8 years, CMMB has expanded with offices in Barbados and St. Lucia.


Source:
The Trinidad and Tobago Stock Exchange Limited
Thursday October 16, 2008