NCB Group to sell controlling stake in Clarien to Cornerstone
Published:Thursday | June 13, 2024 | 9:34 PM
The NCB Financial Group Limited (NCBFG) says it has agreed to sell its controlling interest in Clarien Group Limited to Cornerstone Financial Holdings Limited.
The NCB Group, which owns Jamaica's largest commercial bank, is one of the biggest financial entities in the region.
It announced Thursday that under the share purchase agreement with Cornerstone, it will sell 30.20 per cent of its stake in Clarien Group, the owner of the Bermuda-based Clarien Bank, to Cornerstone or its nominee.
Following the proposed divestment, the NCB Group will retain a 19.90 per cent interest in Clarien.
“NCB Financial Group Limited's decision to sell its controlling interest in Clarien Group is a strategic move aligned with our ongoing efforts to reallocate capital effectively,” said Robert Almeida, chief executive officer of NCBFG.
“We look forward to continuing our collaboration with existing shareholder Edmund Gibbons Limited, while anticipating new majority shareholder, Cornerstone who will hold approximately 70.10%.”
Almeida continued, “this transaction underscores our commitment to optimising our portfolio, while highlighting our confidence in Clarien's continued success".
Completion of the transaction between NCBFG and Cornerstone is subject to conditions, including the requisite regulatory approvals.
The company said once complete, NCBFG will provide transition support to Cornerstone, through its subsidiaries.
"NCBFG's reduced ownership interest in the Clarien Group will not have a material impact on the future earnings or the asset base of NCBFG after the completion of the sale," it said in a statement.
The NCG Group, which is chaired by Michael Lee-Chin, acquired a 50.1 per cent stake in Clarien Group in December 2017.
Cornerstone Financial Holdings Limited consolidates Cornerstone's portfolio companies. It offers services in areas such as infrastructure, energy and real estate, investment banking, asset management and stockbrokerage, according to information on the firm's website.
Investment banker Paul Simpson is the president and founder of Cornerstone, which has operations in Barbados, the United States, and Jamaica.
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