KINGSTON, Jamaica — Guardian Holdings Limited (GHL) announced Monday that the National Commercial Bank Jamaica Limited (NCBJ) has agreed to purchase a 29.9 per cent stake in the company.

This, the company said, 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.

The successful completion of the transaction is subject to regulatory approvals in Trinidad and Tobago as well as in Jamaica, it was noted.

The largest shareholders of GHL have been the Lok Jack and Ahamad families.

“Even though they will sell a portion of their shareholding to NCBJ, they will continue to hold a very significant stake of approximately 22 per cent of GHL,” a GHL release on the matter said.

Arthur Lok Jack will continue as chairman of GHL and the majority of the board will continue to be independent directors.

Chairman Lok Jack was quoted by GHL as stating: “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 organisations, all stakeholders and Trinidad and Tobago/Jamaica relations.”

This transaction is a momentous event in the financial services sector in the Caribbean, as GHL is the leading insurer across the region, and holds leading positions in Trinidad and Tobago and Jamaica, while NCBJ — one of the largest banks in the Caribbean — is the top banking and financial services group in Jamaica, with interests in the wider Caribbean region.

Guardian Group CEO Ravi Tewari was quoted in the Guardian release as saying, “The alignment of NCBJ and GHL is a very positive development and holds great opportunity for our shareholders, our clients and our employees.”

Group Managing Director of NCB Patrick Hylton, was noted as stating that the relationship between two of the largest financial services organisations in the Caribbean creates significant opportunities for growth. 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.”

Avia Collinder