Published: Wednesday August 19, 2008
BERMUDIAN INSURER BF&M Limited, which has controlling interest in the Insurance Corporation of Barbados Limited (ICBL), is waiting on talks with Government before exercising the option to increase its share ownership in the former state-owned company.
BF&M president and chief executive officer John Wight told BARBADOS BUSINESS AUTHORITY, "We had heard recently the announcement made by Government relating to its decision to sell its remaining shares in ICBL but we haven't actually discussed this with them."
In a telephone interview Thursday from his Bermudian office Wight said it was "difficult and premature" to comment on possibly buying another major chunk of ICBL stock.
In November 2005 BF&M, through its subsidiary Hamilton Financial Limited, gained a near-52 per cent stake in ICBL when it bought 19 million of Government's shares for $51.7 million.
Prime Minister David Thompson announced on Budget day this year that Government would dispose of its remaining shares in ICBL and Barbados National Bank to raise funds for upgrading and expanding the Queen Elizabeth Hospital.
Prime Minister Thompson said Government's remaining 15.01 per cent shareholding in the company was "no longer useful in determining the strategic direction" of ICBL.
The stock would therefore be offered first to individuals, then to the National Insurance Board which already owned 5.13 per cent, other local companies, and lastly to the current majority shareholder.
Wight, who is also chairman of ICBL, noted that "there are various options for BF&M to take at this point and we have not made a decision as to what our course of action is".
Government now owns 5.8 million ICBL shares currently trading at $4.75 on the Barbados Stock Exchange.
Source: Nation Newspapers
http://www.nationnews.com/story/292426543444068.php
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