CEO of the Grace Kennedy Group, Don Wehby has indicated that the decision to divest the company’s shares in Hardware and Lumber was a decision made for the best.

Speaking during last week’s Jamaica Stock Exchange 11th Regional Investor’s Conference, the group CEO said the shares were divested to allow GK to focus on financial services and food production.

The sale, which was made to Greystone Equity Partners through Argyle Industries (a St Lucian company incorporated for the purpose of acquiring and holding the investor’s equity interests) early this month, included the divestment of 58.15% of Grace Kennedy’s interest for a price of $18.50 per share.

At the time, Wehby had indicated that “although the move to sell was not an easy one, the divestment is “consistent with the present strategy of concentrating on the food business locally and internationally and financial services in the region”.

Asked if the move was not considered premature given the Boards decision days later to pay an interim dividend, Wehby indicated that a hard decision had to be taken in order for the company to focus on other strategies and areas.

The payment of the dividend which will be made this week will see shareholders, including Argyle whose shares are only a month old, receiving an interim dividend in the amount of $1.09 per stock.
The dividend becomes payable on Friday to shareholders on record as at the close of business on January 15.

H&L currently comprises two separate divisions – Rapid True Value — the foremost local supplier of hardware and home improvement products, and the Agro Grace business — local wholesaler and retailer of agricultural products.

There are currently 10 Rapid True Value outlets across Jamaica, along with six Agro Grace Retail Centres. The company is headquartered at 697 Spanish Town Road in Kingston.

Greystone Equity Partners Inc. is a Caribbean based and Caribbean focused private equity firm with a stated strong commitment to the Caribbean. BM