Sep 2014 Financial News

National Commercial Bank Jamaica Limited - Press Release - Sale of NCBJ's interest in Kingston Wharves Limited

Sep 26, 2014

National Commercial Bank Jamaica Limied (NCB) announced that the Bank and its subsidiary, NCB Capital Markets Limited have reached an agreement that will result in the sale of their 32.59 percent interest in Kingston Wharves Limited (KW) to Seaboard Corporation (Seaboard) and Jamaica Producers Group Limited (JP). As a result of the transaction, Seaboard is acquiring 21 per cent of the outstanding KW Shares and JP is acquiring 11.59 percent of the outstanding KW Shares (thereby increasing its shareholding in KW to approximately 42 percent).

According to Mr. Patrick Hylton, Group Managing Director of NCB, “we continuously review our investment holdings and our operations and have concluded that Kingston Wharves falls outside our core strategic priorities at this time. We are pleased to have been able to identify two buyers who are committed to the continued development of the Kingston port and logistics business.”

KW is listed on the Jamaica Stock Exchange and operates a comprehensive range of terminal equipment across 260,000 square meters of open storage space, 24,000 square metres of covered warehousing and cold storage, and 53,000 square metres of off-dock storage for motor vehicles. The KW terminal has a 1.7 kilometre continuous quay that provides nine deep-water berths for roll on-roll off, lift on-lift off, general break bulk, containerized cargo and bulk cargo vessels.

Seaboard Corporation is a global is a global food, energy and transportation company that is listed on the NYSE MKT. Through its Seaboard Marine Division, it operates a containerized shipping service between the United States, the Caribbean Basin, and Central and South America. Mr. Edward Gonzalez, President of Seaboard Marine stated: “Our shipping line has operated as a customer of Kingston Wharves for decades. We are pleased to deepen our longstanding relationship with all of the stakeholders of Kingston Wharves in our new capacity as shareholder.”

JP is a speciality foods and logistics group operating in the Caribbean and Europe and is listed on the Jamaica Stock Exchange. According to Mr. Charles Johnston, Chairman of Jamaica Producers Group Limited: “JP is convinced that Kingston Wharves’ status as the leading Caribbean multipurpose and multiuser port has always benefitted from the active involvement of diverse industry stakeholders. We think it is good for Jamaica and good for Kingston Wharves that Seaboard has decided to invest alongside JP, other shipping interests and the Jamaican public at this important moment in the development of Jamaica’s logistics sector.”

BroadSpan Capital LLC acted as NCB’s exclusive financial advisor for this transaction.

Source:
The Trinidad and Tobago Stock Exchange Limited
Friday September 26, 2014