NATIONAL Commercial Bank Jamaica Limited (NCB) has reached an agreement to purchase a 29.99 per cent stake in Guardian Holdings Limited (GHL).

NCB, in a press release yesterday, said it will be made through the private sale of shares 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 this transaction, however, is subject to the satisfaction of all conditions, including the grant of all necessary regulatory approvals in Jamaica, Trinidad and Tobago and other relevant jurisdictions.

“This transaction is a game changer in the history of the financial services sector in the Caribbean. It is the first transaction of its kind between two of the leading indigenous financial institutions in the region. NCB, an indigenous Jamaican institution, is the largest financial services institution in Jamaica, and one of the largest in the region. GHL, an indigenous Trinidadian institution, is the leading insurer across the region, with significant market share in Trinidad and Tobago and Jamaica,” the NCB release said.

“The acquisition is consistent with our stated intention to expand our regional interests through strategic investments, joint ventures, mergers and acquisitions, in order to drive continued growth and shareholder value. This momentous partnership also lays the foundation for a future state where an indigenous Caribbean financial institution will also be a leader on the global stage,” said NCB Group Managing Director Patrick Hylton.

“The alignment of NCB and GHL is a very positive development and holds great opportunity for our shareholders, our clients and our employees,” added Guardian Group CEO Ravi Tewari.

Prior to this acquisition, the largest shareholders of GHL were the Lok Jack and Ahamad families through their respective holding companies. Even though they will sell a portion of their shareholding to NCB, they will continue to hold a very significant stake of approximately 22 per cent of GHL, said the release.

“The continued significant shareholding of the Lok Jack and Ahamad families speaks to their continued confidence in and alignment with the vision and growth of the Guardian Group,” said the release.

GHL Chairman Arthur Lok Jack said existing shareholders of GHL have contributed significantly to the growth of the Guardian Group. He added that IFC was clear from the onset that they would desire an exit in a roughly seven-year horizon, which is their business philosophy.

“I am very happy that we have achieved a regional solution to their desired exit. In the process, we have replaced shareholders desiring exit with shareholders who are eager to support the growth and expansion of the Guardian Group,” said Lok Jack, who will continue as Chairman of GHL. The majority of the board will continue to be independent directors.

NCB Group Chairman Michael Lee-Chin said: “This partnership will yield significant benefits for all participating stakeholders. Beyond that, it represents the adoption of a new model for growth led by indigenous Caribbean private sector institutions long seen in the African and South East Asian regions. We are excited about and proud of the implications of this partnership for our region’s growth prospects.”