May 2007 Financial News

GHL Chairman advises: Ride out rough period

May 15, 2007

Arthur Lok Jack, chairman of Guardian Holdings Ltd (GHL), has attributed the Group’s $103 million loss in 2006 to its significant stake in RBTT and its UK investments.

GHL has about 44 million shares in RBTT.

“Within the last couple of years, there are two major factors that affected GHL: our stake in RBTT, which we started to reduce some years ago, and the other was our investments in the UK in our attempt to diversify the Group,” Lok Jack said.

Lok Jack, who also chairs Caribbean Airlines, said GHL does not have answers about what it should do about fair market gains and its RBTT shareholding.

“The market is extremely thin. If we try to sell these stocks in the market, we’ll drive the prices down further, so what we are doing is holding on to these stocks. What would have to happen is we have to ride it out in the meantime and basically, at this present moment, the stocks are valued at the last quarter as of March 31, at $30 or something.”

Lok Jack was speaking yesterday at GHL’s annual shareholders meeting at the Group’s Westmoorings head office.

He told shareholders there were two options available to GHL: that another strategic buyer can buy a large quantum of its RBTT shares or the GHL Group can await the outcome of discussions RBTT chairman Peter July has said the bank is holding with another financial services group.

“At this moment, we don’t have an answer that we are going to do this or do that with this large amount of RBTT stock. I want to be very frank with you.

“If any one of you want to buy the stock, we’d love to sell it, but only at good prices.

“Generally speaking, we are not about to give it away.

“We are not about to go into the market and dump stock. We know it is going to turn around. We just have to ride it out in the meantime. And since they are book losses, non-cash items, while we are concerned about it, it is okay to hold some strain for a while and see what happens,” July said.

Asked by shareholder Rene de Gannes if he had a price in mind at which GHL’s RBTT shares should be bought, Lok Jack replied, “Yes.”

Asked if he’d say what that figure was, Lok Jack replied, “No.”

The chairman said GHL’s problems with its UK investments were “unforeseen and very unfortunate.

“We are not about to go into the market and dump stock. We know it is going to turn around. We just have to ride it out in the meantime.


Source:
SANDRA CHOUTHI
The Trinidad Guardian
Tuesday 15th May, 2007

http://www.guardian.co.tt/business1.html