NCB Capital Markets purchased 466,435,712 on behalf of a client. Shares held by the NCB group were part of the transaction. NCB Jamaica Limited had 360,807,145 or 28.27 percent of the company and NCB Capital Markets Ltd. A/C 2231 had 105,283,757 or 8.25 percent. Steven Gooden of NCB Capital Market only comment is “a release will be made after the close of the Jamaica Stock Exchange today”.
The transaction is clearly not one of a name change as that would have been done as a block transaction. As a result of the transaction, Seaboard is acquiring 21 percent and Jamaica Producers 11.59 percent of the outstanding Kingston Wharves shares. Producers will now own approximately 42 percent of the company. Jeffery Hall CEO of Jamaica Producers confirm the groups interest in the deal and advised of a release after trading on the Jamaica Stock Exchange, to provide the full details.
Jamaica Producers Group already owns 431,777,188 or 33.83 percent of the company and would end up with just over 70 percent of the company. The transaction which was mostly done at $6.50 per share or $1.49 above Tuesday closing price cost $3 billion and would effectively trigger a compulsory takeover offer to the minority shareholders if it was all purchased by Jamaica Producers. The transaction took place in three main blocks that were all done at $6.50,and include 300,345,000 units costing 1,952,242,500, 60,462,145 shares costing $393,003,943 and 105,283,757 at a cost of $684,344,421. Apparently, the largest block was sold to more than one party to the transaction and would have been the reason for the split up of it. This arrangement could mean that Jamaica Producer’s Group would not be a majority shareholder and therefore not trigger the take over clause. the increase in the price exceeds the 15 percent rule of the JSE but the stock had closed Tuesday with a bid of $5.75 which was a set up to allow for the traded at todays price.
In 2012,Jamaica Producers had increased their holdings in Kingston Wharves when they bought Three Hundred and Fifty Seven Million Five Hundred and Fifty Thousand (357,550,000) ordinary shares of KWL at a price of $5 per share to help fund the company’s expansion and modernization in pursuit of increased business expected to flow form the Panama canal expansion.
the transaction will boost NCB 2014 earnings as it comes days ahead of the bank’s year end and whatever gains there will be, will be in the incorporated into the results.
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[…] 17.8 percent to $977 million. Subsequent to the quarter the group acquired 11.59 percent more Kingston Wharves shares raising its stake to approximately 42 percent to become an even more dominant shareholder of […]
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[…] National Commercial Bank bought US$20,408,481 at an average rate of $112.70 and sold only US$8,911,292 at $112.75 on Friday, […]
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[…] the big trade in Kingston Wharves shares on Wednesday worth over $3 billion, Thursday’s trading seem light in contrast. The main […]
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[…] Kingston Wharves $3 billion trade, dominated activity on the Jamaica Stock Exchange, in Wednesday’s trading. The Wharf company had 466 million units of its stock sold to Jamaica Producers and an overseas entity in the shipping industry, by National Commercial Bank. The stock traded at $6.50 up from $5.01 on Tuesday, but it had a bid of $5.75 which allowed the trade to take place 29.75 percent above the closing price on Tuesday. Normally, there would be a 15 percent limitation on the daily trading price movement, from the prior day’s last traded price. but allowances are made for cases where the bids or offer of the previous day better reflect the market value of the stock. Trading activity resulted in the prices of 10 stocks rising and 5 declining as only 20 securities changed hands, resulting in 470,310,461 units trading, valued at $3,066,292,531, in all the market segments. Main Market| The JSE Market Index gained 631.80 points to 72,064.01 and the JSE All Jamaican Composite index rose 706.45 points to close at 79,288.84. IC bid-offer Indicator| At the end of trading IC bid-offer Indicator| At the end of trading, in the main and junior markets, the Investor’s Choice bid-offer indicator had only 4 stocks with bids higher than their last selling prices and 7 stocks with offers that were lower, suggesting a likely negative movement in prices on Thursday. Gains| Stocks gaining with last traded prices, at the end of trading in the main market are, Berger Paints with 3,799 shares trading, with a 3 cents rise to $1.65, Carreras with 1,500 shares changing hands, 35 cents higher at $34.65, Desnoes & Geddes put through 13,083 units with a gain of 10 cents to end at $4.80, Grace Kennedy had 4,955 shares changing hands and gained $1, to $59, Kingston Wharves 466,435,712 shares traded with a gain of $1.49 to $6.50, Mayberry Investments closed with a 2 cents gain at $1.47 after 9,000 units went through the market, there were no stock on offer at the close of trading, National Commercial Bank never benefited from the big sale of Kingston Wharves shares and had 89,031 units active, with a 20 cents increase to $18.20 and Sagicor Group saw 3,157,519 units moving 50 cents higher, at $9.75. Firm| The stocks in the main market to close without a change in the last traded prices are, Proven Investments with 30,000 units, closed at 17.99 US cents and Radio Jamaica with 2,132 shares at $1.04. Declines| The last traded prices of stocks with losses at the end of trading in the main market are, Caribbean Cement with 93,220 shares, lost 19 cents to end at $2.36, Sagicor Real Estate Fund traded just 14,436 units with 28 cents loss at $6.52 and Scotia Group with 93,248 shares, closed 8 cents lower at $19.01. Preference| Jamaica Money Market Brokers 8.75% preference share traded 10,500 units at $3 and Jamaica Money Market Brokers 7.50% preference share traded 27,546 units at $2. […]
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[…] National Commercial Bank will collect $3 billion for the sale of its 32.59 percent investment in Kingston Wharves, which it executed today, on the Jamaica Stock exchange at $6.50 per share. But the banking group will not see a boost in its profit from the transaction although the shares were purchased at much lower price than what they have been sold at. At the end of September last year, the investment was booked at $2,705,495 as the group accounted for their share of profit from the time the investment was made some years ago shortly after the banking was taken over by Lee Chin the majority owner of the bank. Since then Kingston Wharves reported profit of $734 million of which $240 million would be attributable to the bank’s holding. That would bring the amount booked up to June this year to $2.945 billion leaving a small difference which is less than the amounts of profit they would have booked had the sale not taken place. The group will benefit going forward, from funds that it can either lend or invest in other areas. Jamaica will benefit from some foreign exchange inflows, as a result of the sale. […]
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[…] on the Jamaica Stock Exchange, in Wednesday’s trading. 466 million units of the stock was sold to Jamaica Producers and an overseas entity in the shipping industry. National Commercial Bank was the main seller. The […]
[…] the other major traded to take place in the market with 1.3 million shares in ten separate trades. NCB Capital Market sold from in house inventory with Scotia Investments being the broker doing the vast majority of the […]