Feb 2011 Financial News

Sagicor, IFC discussing US$100-m capital injection

Feb 09, 2011

SAGICOR Financial Corporation (SFC) and International Finance Corporation (IFC) have commenced talks over an investment package of up to US$100 million to support SFC's growth in the region.

The investment, if an agreement is reached, will have the IFC buy common and preference shares in SFC, while current shareholders will be allowed to participate in the purchase of additional shares, according to Dodridge Miller, SFC Group president and CEO.

"The investment by IFC is subject to the completion of successful negotiations between Sagicor and IFC, and all necessary approvals, including the approval of the appropriate regulatory bodies and Sagicor shareholders," he said in a notification to the Jamaica Stock Exchange (JSE), issued Monday.

The largest shareholders of SFC, which is listed on the Barbados, Trinidad & Tobago, and London Stock Exchanges, are National Insurance Board of Barbados with six per cent, Republic Bank Limited (as nominee) (four per cent), T & T Unit Trust Corporation (three per cent), and RBTT Trust Limited (as nominee) (one per cent).

The remaining shares are held by more than 37,000 shareholders, mostly individuals, each holding less than one per cent.

According to IFC's description of the project via is website, "the proposed investment will be used to secure additional funds for general corporate purposes and to pursue the company's ongoing growth and expansion strategies in the region".

Miller said the discussions with the IFC were aimed at "developing a significant partnership between the two institutions".

"Last year when IFC first approached us with a view to partnering with Sagicor, we considered the proposed relationship would be very advantageous to the company," said Miller in the release. "An approach from such a respected international private sector investor, a member of the World Bank Group, demonstrates confidence in the management and operations of Sagicor. The proposed relationship, reinforced by a sizeable investment by IFC, would provide us with additional long-term capital to pursue our regional growth strategy, and further cement the position of the Sagicor Group as the leading provider of insurance and ancillary financial services in the region."

SFC, the parent of Sagicor Life Jamaica, is one of the largest local insurers operating in the Caribbean region, with total assets of $4.9 billion and total equity of $744 million as of September 30, 2010.


Source:
Jamaica Observer
Wednesday February 9, 2011

http://www.jamaicaobserver.com/business/Sagicor--IFC-discussing-US-100-m-capital-injection_8341683#ixzz1DUOPIebs