Sunday 15 September, 2019

NCB makes new offer to Guardian shareholders

NCB Financial Group Chairman Michael Lee Chin.

NCB Financial Group Chairman Michael Lee Chin.

NCB Financial Group Limited (NCBFG) has made a third bid for the shares in Guardian Holdings Limited of Trinidad (GHL), at an enhanced price of $2.79 per share and for up 62 per cent of the outstanding shares in GHL.

In accordance with the amended agreement, the aggregate increased offer price is to be partially financed, to the tune of US$45 million, by vendor financing to be made available to NCBFG by the key shareholders.

The new offer comes one month after NCBFG’s wholly owned subsidiary NCB Global holdings Limited (NCBGH), offered shareholders of GHL US$2.65 per share, US$0.30 more than the original offer made for the additional shares at US$2.35 each.

Both offers, were, however, shut down by the minority shareholders who argued that the price was nearly US$1 below the US$3.24 per share that NCB paid for its initial stake in a deal with key shareholders, including Arthur Lok Jack and Imtiaz Ahamad, that closed in May 2016.

“An offer in these terms will be consistent with the terms of the Shareholders Agreement dated May 12, 2016 with Arthur Lok Jack, Shiraz Ahamad, Reyaz Ahamad and Imtiaz Ahamad and several of their affiliate entities, as amended by a recently concluded amendment agreement among the parties,” NCBFG said in a press release.

The financial institution added that it is the intention of NCBFG and the offeror NCBGH to publish the offer and take-over bid within the next 30 days.

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