Business
BY STEVEN JACKSON Business writer jacksons@jamaicaobserver.com Friday, August 09, 2013The connected shareholding of National Commercial Bank (NCB) director Robert Almeida dipped by roughly $200 million amid the group’s acquisition of insurance giant Advantage General Insurance (AGI).The dip represented the largest movement amongst the 11 directors in the bank — the nation’s largest defined by assets at $414 billion.Almeida’s personal shareholding remained unchanged, but his connected party shareholding dipped to 50.2 million in the March 2013 quarter, from 60 million last Christmas, according to the latest listing of shareholding. The stock price fluctuated at around $20 during the quarter which periodically valued these shares at $200 million.“I am pretty sure it’s related to the transfer of shares from one group company to another,” he told Caribbean Business Report from Canada on Wednesday night. “It would have moved from a company in which I am on the board to another company in which I am not on the board.”He declined, during the phone interview, to disclose the names of the institutions. Later he indicated that the transfer occurred during a period when NCB Capital Markets fully acquired AGI. Almeida was listed as a director of AGI during the review period.“It happened at a time when AGI was acquired and shares would have been moved from it because NCB cannot own its own shares. So it could have been shares owned by AGI.”In February, NCB Capital Markets completed the acquisition of a majority stake of AGI for US$34 million, according to US securities and Exchange Commission (SEC) information. The acquisition would facilitate the expansion of NCB into the general insurance market. Advantage General is the largest insurer of motor vehicles in Jamaica.Prior to the deal, AGI was majority held by Canadian-Jamaican investor Michael Lee-Chin. But he also owns some two-thirds of NCB, the parent company of NCB Capital Market.“In order for the transaction to get clearance,any NCB shares held by the company would have to be [transferred or sold] prior to the completion of the transaction due to regulatory requirements,” concluded Almeida.ALMEIDA… It happened at a time when AGI was acquired
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Almeida"s connected shares dip $200 million
