Oct 2009 Financial News

NIB shares in Republic worth $2.3B

Oct 15, 2009

THE NATIONAL Insurance Board’s (NIB) shareholding in Republic Bank has increased to about 17 percent, up two percent, or about $2.3 billion. NIB has also upped its stake in Trinidad Cement Limited (TCL) to about ten percent or about $105 million.

To trigger the take over code there must be a 30 percent stake in the company and analysts said NIB fell way short of that. For Republic Bank, NIB’s stake has moved from 15.15 percent to 17.41 percent, a total of 27,960,429 shares. The total issued share capital of Republic is about 160 million.

Republic Bank managing director David Dulal-Whiteway said he was aware of the June transaction by NIB. “NIB sees the value of Republic bank shares,” he said noting it was a sign of confidence with NIB looking at its long term investment. Yesterday, the bank’s shares traded at $85.98.

TCL CEO Rollin Bertrand also said he was not surprised by the share purchase noting the shares were at a good price at the moment. Yesterday, TCL shares traded at $4.17. “NIB sees the value in TCL,” said Bertrand, noting NIB was the second largest shareholder after Cemex, the Mexican cement giant.

As part a Memorandum of Understanding (MOU) signed between Central Bank and the Government on January 30 to save CL Financial, the conglomerate divested all of its 55 percent shareholding in Republic Bank with Government gaining control of these shares.

In a press statement yesterday, NIB whose chairman is Udecott boss Calder Hart, said it had acted under the takeover bye-laws of the Securities Industry Act.

The NIB cited “investment purposes” as reason for its decision to buy shares in both companies.

Both shares were acquired through the Trinidad and Tobago Stock Exchange, said the statement.

NIB said that as at June 25, 2009 it held 15.15 percent of the issued share capital of the bank.

Over a three-month period, June 25 to August 27, 2009, NIB said it acquired an additional 2.25 percent of Republic’s issued share capital.

On TCL, NIB said as at June 30, 2003 it held 9.96 percent of the issued share capital of TCL. With the purchase of additional shares from June 30, 2003 to October 19, 2006, NIB said it acquired an additional 20 percent of the issued share capital of the company.

As of October 12, NIB now holds a total of 25,367,032 shares or 10.16 percent of the issued share capital of TCL.


Source:
Rory Rostant
Trinidad Newsday
Thursday, October 15 2009

http://www.newsday.co.tt/business/0,109201.html