May 2013 Financial News

New NEL board appointed

May 10, 2013

A new National Enterprises Ltd (NEL) board was chosen yesterday during a special meeting of shareholders at Capital Plaza Hotel in Port-of-Spain. Kenny Lue Chee Lip was re-elected to serve as chairman and practicing psychologist Valini Pundit was voted in to serve another two-year term. Three new members—Sylvester Ramquar (deputy chairman), Sherry Katwaroo-Ragbir and Ethelbert Wilson—were elected to serve on the board.

Lue Chee Lip, who was re-elected unanimousl, said NEL’s new board plans to “rethink and come up with a new path”. He said the state-owned investment holding company, which has “600 million issued shares” in companies such as National Flour Mills (NFM), Telecommunications Services of Trinidad and Tobago (TSTT) and Trinidad Nitrogen Company, “has been a passive company” which collected and distributed dividends.

The board is now looking to “see what else can be done to enhance shareholder value.” Asked about the board’s other plans to increase shareholder value, Lee Chee Lip said: “The board is currently working on to enhance the investi-company base.” He said he advised the T&T Stock exchange to amend NEL’s investment policy to include equity purchases and longer term investments. He said NFM, which has faced financial challenges over the years, recently reported a profit and declared a dividend of eight cents.

Lee Chee Lip described this as a big improvement, since last year the company had declared dividend of zero and before that three cents and now its share price has increased from 60/61 cents to 80 cents. “The population is seeing that improvement in the profitability and that has affected their share price,” he said. He attributed the company’s increased profitability in the decrease in global grain and feed prices.

NFM’s Ag CEO Mokesh Ramlal, who was at the special meeting, said the company has been doing well since it recently declared a $13.3 million profit. “We continue to tighten our controls and build our people,” he said. “You will see the share prices continuing to rise.”


Source:
Melissa Doughty
Trinidad Guardian
Friday May 10, 2013

http://www.guardian.co.tt/business/2013-05-10/new-nel-board-appointed