FCIB fronts for client on GK share acquisition
Published:Wednesday | June 22, 2011 | 12:00 AM
FirstCaribbean International Bank said the J$500 million of shareholdings in local conglomerate GraceKennedy Limited was acquired on behlaf of a single client, who is now the seventh largest GK shareholder.
The regional bank's clarification of ownership follows a Wednesday Business report noting the appearance of FCIB Barbados on the list of Top 10 GK shareholders.
The client, whose identity remains confidential, bought up millions of shares done via the bank around the same time that Jamaica Producers Group and Jamaica National were shedding holdings.
"FirstCaribbean did not, on its own behalf purchase 2.6 per cent of GraceKennedy's shareholding. The bank is holding such shares as a custodian for a client who in fact purchased those shares," said Debra King, FirstCaribbean's director of Communications via local publicist Marcia Erskine & Associates.
FirstCaribbean is the largest listed bank in the English-speaking Caribbean, with assets of over US$10.9 billion (J$935 billion) and market capitalisation of US$2.5 billion (J$214.5 billion).
The bank operates in 17 regional markets, including Jamaica, serving half a million active accounts.
The client holds some 8.6 million units or 2.6 per cent of GraceKennedy up to March.
The client aggressively acquired this position during the March quarter, buying between J$170 million and J$458 million worth of shares, based on comparisons of Jamaica Stock Exchange shareholder data and the GraceKennedy 2010 annual report.
Currently the client has more shares than Celia Kennedy, chairman Douglas Orane and Joan E Belcher, whose individual holdings range between five and six million shares (see insert).
It is not known whether the client is an individual or a company. Other major top-10 shareholders are companies or pension funds.
The purchase occurred as two top-10 shareholders including Jamaica Producers and Jamaica National Building Society offloaded millions of units.
JN was listed among the GK Top 10 shareholders up to December 2010, but denied being a major shareholder when contacted.
Three weeks ago JP revealed that it liquidated some of its holdings in GK and other stocks totalling some $903.7 million for capital to fund its growth plans.
JP declined to comment on the volume and terms of the sale in May. Its holdings in GraceKennedy fell to 23.2 million shares as of March 2011 or some 8 million fewer shares since December 2010 when its holdings amounted to 31.15 million shares.
JP remained the single largest shareholder in the conglomerate at March 2011. Its current position will become more clear after June quarter disclosures.
Most of the JP transactions occurred after the March quarter.
Top 10 GK shareholders at March 2011
- Jamaica Producers - 23.2m shares or 7%
- GraceKennedy & Co Pension Scheme - 15.1m shares or 4.5%
- Luli Limited - 14.9m shares or 4.5%
- National Insurance Fund - 12.5m shares or 3.7%
- Life of Jamaica Ltd.Pool Equity Fund No 1 - 12.3m shares or 3.7%
- J.K. Investments Limited -12m shares or 3.6 %
- FirstCaribbean Barbados (on behalf of a client) - 8.6m shares or 2.6%
- Celia Kennedy - 6m shares or 1.82%
- Douglas Orane - 5.8m shares or 1.74%
- Joan E. Belcher - 5.4m shares or 1.64%