International Finance Corporation (IFC) to pump capital into GHL - Take 13 per cent stake
Published:Sunday | May 23, 2010 | 12:00 AM
International Finance Corporation (IFC), a World Bank affiliate, has taken a 13 per cent equity stake in Guardian Holdings Limited (GHL).
In return, the IFC will pump new capital into the insurance comglomerate, a Trinidad-based operation with holdings across the region, including Jamaica, and convert an existing loan to equity.
The transaction is valued at US$75 million (TT$473 million), or TT$16 per share - a one dollar premium on Friday's closing price of TT$15.
Guardian, in a stock market filing posted Friday, said that it would advise shareholders in due course of what the transaction means for its operations going forward.
regional expansion
Shareholders will have to approve the deal. The transaction also has to be agreed to by the GHL board.
"The investment in GHL will strengthen its capital base and will support the company`s strategic regional expansion," Guardian said.
The agreement includes converting the US$50 million IFC subordinated loan on the insurance company's books to common equity.
The other US$25 million will be new capital.