BRIDGETOWN, Barbados, January 7, 2010 - The head of Sagicor Financial Corporation is insisting that despite the company seeking to raise capital by selling new shares privately, it’s on good financial footing and there’s nothing to be concerned about.
Although saying that the laws of Barbados permit directors to issue new shares by means of a private placement (that is, selling to private investor without an initial public offering) without shareholder approval and without first offering the shares to existing shareholders, Group Chairman and CEO Dodridge Miller yesterday admitted in a statement that the private placement effectively resulted in diluting existing shareholders shares by four per cent of their previous holdings.
I just noticed that BFP did this story - Did Sagicor’s private placement of additional shares dilute the holdings of existing shareholders?
The Trinidad & Tobago Guardian Online, 7 Jan 2010, carried this story: Sagicor CEO explains Barbados transaction
“This new capital is required to finance our further expansion, primarily in diligently selected opportunities in the United States and the United Kingdom,” Miller stated. “After several months of working on the plan, we, along with our advisers, formed the view that market conditions were not appropriate for capital raising. …”
Nation News, Jan 8, 2010 - All’s well at Sagicor!
However, the Trinidad and Tobago Press accused Sagicor of diluting the shareholding of thousands of stockholders, most of whom were Trinidadians, and raised questions about why the company was raising capital at this time.
But Sagicor’s group president and chief executive officer Dodridge Miller responded yesterday, saying that Sagicor was a “strong financial institution” that had a history of “conservative and prudent” management of its business.
He insisted that the company faced no financial difficulty