National Commercial Bank Jamaica Limited (NCBJ) has made arrangements to purchase a 29.9% stake in Trinidad’s Guardian Holdings Limited (GHL).

According to a release from GHL, this purchase will be achieved through a private sale of part of their shares held by companies owned by the Lok Jack and Ahamad families and the International Finance Corporation (IFC), the private sector arm of the World Bank. However, it says the successful completion of this transaction is subject to all necessary regulatory approvals in Trinidad and Tobago as well as in Jamaica.

According to Guardian Group CEO Ravi Tewari, “the alignment of NCBJ and GHL is a very positive development and holds great opportunity for our shareholders, our clients and our employees”. Meanwhile, NCBJ Group Managing Director Mr. Patrick Hylton, says “this relationship between two of the largest financial services organizations in the Caribbean creates significant opportunities for growth”. He says “NCBJ’s mindset as a shareholder is to buy, hold and prosper, which is a perfect match for the long-view held by Guardian Group, necessary to operate in the insurance landscape. NCBJ would also bring a great deal of new investment opportunities for Guardian’s asset book.”

Following the purchase, Arthur Lok Jack will continue as Chairman of GHL and the majority of the Board will continue to be independent directors.

Chairman Lok Jack says that “For several years we saw significant net Foreign Direct Investment (FDI) flows mainly from Trinidad to Jamaica. In this instance, there will be a notable reversal of that trend, with the leading Jamaican financial institution taking a major stake in the economy of Trinidad and Tobago through the leading insurance and financial services group – Guardian Group. This augurs well for the future strength and stability of both organizations, all stakeholders and Trinidad and Tobago/ Jamaica relations.” BM