Dec 2010 Financial News

GHL investment 'fantastic opportunity'

Dec 02, 2010

The International Finance Corporation's US$75 million investment in local insurance conglomerate Guardian Holdings is like a "good housekeeping seal of approval" said GHL chief executive officer Jeffrey Mack.

Mack and several representatives of IFC were hosted by Trinidad and Tobago Stock Exchange (TTSE) managing director Wayne Iton at his office at Nicholas Tower, Port of Spain, yesterday.

Iton said of the US$75 million injection, US$15 million was originally debt converted to equity, while the balance was a cash injection.

Mack said the investment stood as testament to the good governance within GHL. "The IFC spent a lot of time looking at our plans, looking at our growth plans and they were convinced that we were a well run company from a corporate governance standpoint, from a risk management standpoint," he said.

Mack said the partnership was mutually beneficial as GHL's wide platform across the Caribbean helped fulfil the IFC's mandate to foster economic growth through private sector investment.

He said though there was no planned allotment for the money just yet, the funds would give GHL the leverage to look for the right investment opportunities.

Mack said the injection was also timely because when the new insurance act comes on stream, it will require companies to hold more capital. "This is going to be a fantastic opportunity because a company like Guardian, now with the IFC investment, it will be one of the companies that can help consolidate the market, look for and take advantage of the opportunities that will inevitably come up," he said.

Giri Jadeja, senior manager of IFC's Financial Markets, said he hoped their participation in GHL's equity "would improve and increase the liquidity in the Trinidad Stock Exchange".

The investment gives IFC a 13 per cent share in GHL and the stock will trade for $16 per share on the TTSE. The IFC agreed to the cash injection in May and gained shareholder approval in September.


Source:
By Renuka Singh
Trinidad Express
Thursday December 2, 2010

http://www.trinidadexpress.com/business/GHL_investment__fantastic_opportunity_-111165849.html