Jul 2010 Financial News

GHL to sell Guardian Asset (Jamaica)

Jul 12, 2010

Guardian Asset Management Jamaica Ltd (GAMJ) has entered into an agreement with Proven Management Ltd to sell the company. No details were given about the cost of the deal. In a statement issued on Friday, Guardian Holdings, the parent company of GAMJ, said: “On July 7, 2010, Guardian Holdings Ltd (GHL), the parent company of Guardian Asset Management Jamaica Ltd, received an offer from Proven Management Ltd to purchase 100 per cent of the shares in Guardian Asset Management Jamaica Ltd. “GHL has entered into an agreement to sell, subject to due diligence of Guardian Asset Management Jamaica Ltd by the purchasers, regulatory approvals in Jamaica and T&T, as well as the approval of the GHL board.

“At this juncture, we are in discussion with Proven and, once a definitive position is established, all required announcements and notifications will be made. “Guardian wishes to assure our customers that the company is in full compliance with regulatory capital requirements and that their interests remain our most important priority,” read the statement.

GHL sells assets
Proven Investments was founded by Peter Bunting, Gary Sinclair, Mark Golding and Christopher Williams. GAMJ is managed by Lisa Gomes, whom the Jamaican media reported as being credited with doing a very good job running the Jamaican based-asset management company. According to The Insurance Insider Web site, the Arthur Lok Jack-chaired GHL last year sold Gibraltar-based Insurance company Zenith Insurance MarkerStudy Holdings, in exchange for a possible share of any profits the business makes in the next four years.

Jeffrey Mack, chief executive officer, GHL, said about the sale: “This move is part of the group’s overall strategy to shed non-performing businesses and reduce operating costs so as to deliver sustainable, quality earnings to its shareholders.”

The Jamaican operations manage third-party client funds and have responsibility for the investment management of the assets and portfolio of the Jamaican companies within Guardian Holdings. Last year, GAMJ looked to achieve 31.33 per cent return on average equity. The company ended the year 2009 recording an increase in net profits, which came in at J$463.3 million, a vast jump on the J$361.4 million recorded for the previous year. Net revenue came to J$812.6 million, with expenses of J$361.4 million.

According to a company release, the company’s strategy of aggressively moving to grow its client base was achieved and balance sheet funds under management in the form of repurchase agreements grew by 5.4 per cent or J$942 million, moving from J$17.2 billion at the end of December 2008 to J$18.1 billion at the end of December 2009.

About Proven Management
In May of this year, Proven obtained a securities dealers licence from the Financial Services Commission (FSC), heralding its arrival as an advisory services and investment banking business.


Source:
Trinidad Guardian
Monday July 12, 2010

http://guardian.co.tt/business/business/2010/07/12/ghl-sell-guardian-asset-jamaica