Oct 2006 Financial News

Query over Sagicor on London exchange

Oct 09, 2006

SAGICOR FINANCIAL CORPORATION'S push to remove its 20 per cent share ownership restriction has gained approval from some members of the local investment community.

However, questions have been raised over why the Barbados-based insurance conglomerate would pick the London Stock Exchange (LSE) for its first point of international listing.

Ricardo Davis, fixed income and equity trader for CMMB Barbados Ltd, told BARBADOS BUSINESS AUTHORITY he agreed with the removal of the restriction since it would diversify the company's ownership base, and listing on the LSE would give Sagicor "fantastic" exposure internationally.

Davis discounted the suggestion that this could make Sagicor ripe for a takeover. He noted companies that were not performing well were usually the ones which saw shareholders sell off their shares once a takeover bid had been made; but in this case he thought shareholders would stay for the long term since Sagicor was growing and performing well.

Christopher Callender, portfolio manager at Fortress Fund Managers Ltd, agreed with the restriction's removal if it meant Sagicor would be able to raise its international profile.

He said Sagicor share prices might "fly" on the Barbados and Trinidad and Tobago stock exchanges in anticipation of the listing but added that the LSE would probably "temper" that rapid rise.

Douglas Skeete, a Sagicor shareholder and president of the Shareholders Association of Barbados, said he had been calling for removal of the restrictions for years.

However, he pointed out that Sagicor did business in Jamaica, the Bahamas and the United States, and it might make more sense to list in a territory where the company's brand was recognised.

He suggested Sagicor could have sought to grow its investor base regionally first, and then turn to the United States for its international listing.


Source:

Nation News Barbados
Monday 9th October,2006

http://www.nationnews.com/story/299112379533803.php