Oct 2006 Financial News

Sagicor – Notice of Special Meeting

Oct 02, 2006

Sagicor Financial Corporation (SFC) has given notice of a Special Meeting to be held on Wednesday, November 8, 2006 at 5.30 pm at Hilton, Barbados. The main purpose of the meeting is to consider and if thought fit remove the restriction limiting any shareholder to owning a maximum of 20 per cent of outstanding shares.

The reason for this is that the Company is seeking a listing on the London Stock Exchange (LSE) and was first advised that there was no impediment to listing with a 20 per cent constrained share ownership. Hence, when SFC recently removed its 5 per cent restriction to 20 per cent, it was not aware that a listing on the LSE could not be achieved with a 20 per cent restriction.

The seeking of this listing is in keeping with SFC’s strategy to expand and grow in the Caribbean and Internationally as a presence in the International Market is an integral part of its business strategy. SFC made five major acquisitions in 2005, has recently engaged in the international bond market and has achieved an investment grade rating of BBB+ from Standard & Poor’s.

According to the Chairman, as a global financial institution Sagicor and its Shareholders will benefit from the following advantages of an international listing:
1. Access by Shareholders to more liquid markets for the trading of freely transferable shares
2. Access to capital in more established markets to pursue its strategy of expansion
3. Creating a footprint in an international capital market
4. Enhancing its ability to compete in a global environment
5. Exposure to international best practice in corporate governance.

The resolution must be approved by not less than two thirds of the votes cast by Shareholders at the meeting, whether by proxy or otherwise. Should this resolution be passed, SFC will be the only Caribbean based Company to be listed on an international stock exchange.

We believe that if the resolution is passed, it would redound to the benefit of SFC shareholders. Hence, we reiterate our BUY recommendation.


Sreshtha Tewari
WISE Research Team
October 2, 2006.