NCB Global Holdings to sell two million Guardian shares at a discount

Less than two weeks after Guardian Holdings Limited relisted on the Jamaica Stock Exchange, NCB Global Holdings, its parent, has invited prospective investors to buy some two million shared in the Trinidadian company at a discounted price.

NCB Global Holdings Limited, which holds a 62 per cent stake in GHL, is the offering the two million ordinary shares based on the terms outlined in a prospectus it released, yesterday, May 18, 2021.

The board of NCB Global Holdings Limited had approved the sale of the shares — 0.86 per cent of the issued shares — on May 5, 2021.

With an invitation price of J$$795.00 per ordinary share, NCB Global Holdings hopes to successfully raise J$1.59 billion. For investors, they stand to benefit from immediate gain should the price of the stock continue to appreciate since today’s price is at $899.85 per unit.899.85

NCB Financial Group in New Kingston, Jamaica (File photo)

The invitation will open on May 31, 2021, and close on June 11, 2021, subject to the sale of a minimum of 1,500,000 units. 

Guardian Life has sold insurance in Jamaica since 1999 and has engaged in the underwriting of all classes of long-term insurance business.

“While the past year was fraught with tremendous challenges, the company was able to overcome these challenges and produced another satisfactory year”

— Patrick Hylton, CEO, NCB Financial Group

In May 2019, by NCB Financial Group, through NCB Global Holdings, acquired GHL as a wholly owned subsidiary of the NCB Financial Group.

At that time, NCB purchased an additional 74.23 million shares in Guardian Holdings Limited, which doubled its ownership of the regional insurance group to 62 per cent at a cost of US$207 million (JM$28 billion).

More growth

In his letter to investors, included in the prospectus, Chairman of GHL Patrick Hylton said in the letter to investors, “This invitation creates a unique opportunity for Jamaicans to share in the continued growth of the company. 

Chairman of Guardian Holdings Limited and President and CEO of NCB Financial Group Patrick Hylton (File photo)

“Furthermore,” he added, “this transaction is likely to extend and diversify the company’s investor base across the region.”

The proceeds of the sale, according to Hylton, will be used for general corporate purposes. If the offer is successful, the selling shareholder will continue to hold a controlling interest in the company. 

GHL has demonstrated strong performance in financial year 2020 with profit attributable to equity holders of TT$774 million. This performance is also 12 per cent above the 2019 profit of TT$692 million. 

In the five years since December 2015, GHL has more than doubled profits. 

Guardian Holdings Limited’s headquarters in Trinidad and Tobago (File photo)

“While the past year was fraught with tremendous challenges, the company was able to overcome these challenges and produced another satisfactory year. The staff and agents demonstrated commitment and resolve in quickly activating digital channels to service customers and to make new sales,” Hylton stated.

“The robustness and flexibility of the new technological infrastructure in which the company invested over the past few years was also proven, as it provided the bedrock for securely enabling digital channels of sales and service,” he added.

Four hundred thousand shares are being reserved for staff of NCB Financial Group or Guardian Group  and one million shares for clients of NCB Financial Group and Guardian Group in Jamaica who offer to purchase shares with an NCB Capital Markets Limited brokerage account.