Jan 2012 Financial News

Neal & Massy eyes credit bureau, Lascelles for new investment

Jan 20, 2012

Trinidadian conglomerate Neal & Massy Holdings, which this month exited its investment in the Shell gas station and oil distributorship in Jamaica, plans to get into other lines of business here under its five-year growth plan.

Neal & Massy owned 40 per cent of Cool Petroleum Holdings, which operates the Shell businesses locally, having partnered with Joey Issa of Cool Corp to buy the business in 2005.

The Trinidadian conglomerate is positioning to enter Jamaica's infant credit bureau market; is weighing whether to expand into retail; and hopes to snap up spirits assets were opportunities to open up at Lascelles deMercado, according to president and group CEO of Neal & Massy, E. Gervase Warner.

"The divestment of Cool Petroleum is another piece of the restructuring process we are doing here at Neal & Massy, as part of the rationalisation of the group's non-core assets to focus on our core units," Warner told the Financial Gleaner.

Neal & Massy is among the applicants for a credit bureau licence in Jamaica, Warner said.

The Bank of Jamaica, the authority designated to regulate the sector under the new Credit Reporting Act, has been reviewing applications over the past year and is close to a decision on which entities will be licensed.

Deputy Governor Gayon Hosin, who has responsibility for financial institutions supervision, declined to name the appplicants, but two other entities have previously outed themselves — Premier Credit Bureau Limited and Creditinfo Jamaica.

"It is expected that, subject to the timely receipt of all required information, the central bank should complete processing these applications within the first quarter of this year," said Hosin told the Financial Gleaner.

The new credit reporting system allows for the sharing of information between financial institutions and other specified bodies, through credit bureaus which will provide information on the borrowing and bill-paying habits of consumers and companies.

Warner said Neal & Massy was "also interested in investing in retail in Jamaica", but said that the particular areas of focus were yet to be determined.

Interested in Lascelles

He indicated that Neal & Massy would be interested in acquiring some of the business of Lascelles deMercado, the Jamaican spirits conglomerate now in the control of the Trinidadian government, should it materialise that it is broken up and sold off in bits.

Lascelles has previously denied that a break-up plan is under consideration, talk of which has been underpinned by the company having fallen into arrears on the servicing of its bonds last year.

Lascelles is currently fighting a off a hostile takeover bid led by its former managing director, William McConnell.

Neal & Massy's Jamaican operations, chaired by Brian Young, include subsidiaries Gas Products Limited, H.D. Hopwood & Company Limited, Illuminat Limited and Magna Rewards.

"There are lots of growth opportunities, but nothing will be done in a rush," Warner told the Financial Gleaner, the same day it was announced that private equity firm, Blue Equity LLC, had acquired control of Cool Petroleum.

The sale price for Cool was not disclosed.

The conglomerate, in a statement to shareholders, announced at yearend that it had made progress on plans to dispose of loss-making resort business Almonds in Barbados and could now focus on executing its five-year strategic plan to grow the operation.

Weeks later, the sale of Cool Petroleum was announced by the American buyer.


Source:
McPherse Thompson, Assistant Editor - Business
mcpherse.thompson@gleanerjm.com
Jamaica Gleaner
Friday January 20, 2012

http://jamaica-gleaner.com/gleaner/20120120/business/business5.html