May 2010 Financial News

GHL Press Release – Guardian Holdings Limited and the International Finance Corporation Strengthen their Partnership

May 27, 2010

The following press release was received from Guardian Holdings Limited:

Guardian Holdings Limited (GHL) and the International Finance Corporation (IFC), a member of the World Bank Group, today reached an agreement to invest $US75 million ($TT473 million in the common equity of the Group at a price of $TT16 per share. The investment in GHL will strengthen its capital base and will support the company’s strategic regional expansion. The price per share at which the IFC is investing represents a 6.6% premium over yesterday’s closing price for the company as quoted on the Trinidad and Tobago Stock Exchange and a 17% premium over GHL’s 30 day moving average price of $TT13.65.

The agreement includes converting IFC’s current $US50 million ($TT315 million) subordinated loan into common equity while at the same time investing $US25 million ($TT158 million) of new capital into GHL. The transaction will significantly improve GHL’s debt to equity ratio. Post completion of this transaction, IFC will own approximately 13% of the outstanding share capital of the Group.

Giri Jadeja, Senior Manager for IFC Financial Markets, said, “We are very pleased to strengthen our existing partnership with Guardian through this equity investment and look forward to working closely with the company as they grow their current businesses and look for potential growth opportunities in the Caribbean and Central America. Guardian’s strong track record diversified business lines and wide reach in the Caribbean provide the IFC with an excellent platform to deepen insurance penetration and achieve strong development impact in the Caribbean and beyond.”

Jeffrey Mack, Group Chief Executive of Guardian Holdings, said, “IFC’s investment is a vote of confidence in GHL, especially when one considers that the IFC is transforming their current secured debt position into an unsecured equity position. Plus, at the same time, they are investing new equity into our Group. This demonstrates their belief in not only how we currently operate, but also in our future plans for strategic growth. They will be a key partner for us as we grow and diversify our operations in the region.”

The agreement is subject to the approval of the shareholders of GHL as well as the Board of Directors of the IFC. GHL will advise its shareholders in due course of the next steps regarding this transaction.

Jeffrey Mack
GHL Group Chief Executive Officer
May 20, 2010


Source:
The Trinidad and Tobago Stock Exchange Limited
Thursday May 27, 2010