Proven Investments Ltd (JSE:PROVEN)

Another acquisition. This time by #PROVEN

PROVEN Investments Limited (PROVEN) has disclosed the Company hasentered into a definitive agreement with Knowledge First Foundation to purchase 100% of the issued share capital of Heritage Education Funds International Inc., for an undisclosed consideration. “Heritage Education Funds International Inc. specializes in administering and managing Education Savings Plans for its clients in the Bahamas, Bermuda, […] The post PROVEN Investments Limited (PROVEN) – Acquisition of Heritage Education Funds International Inc appeared first on Jamaica Stock Exchange. »» View story

   • 4 years ago  • 1

#pjam #proven listed among the top two to benefit

WITH the Bank of Jamaica (BOJ) ending its dividend moratorium two months ahead of the June timeline, several companies and institutional investors should begin to experience a positive outrun heading into the second quarter even as some firms remain resolute in their decision to not pay in the current environment.The measure which was intended to protect the financial system due to the heightened uncertainty surrounding COVID-19 came to an end on April 1 as the BOJ's assessment revealed that the worst of the impact on the economy is behind the country. With the resilience of the system holding up to expectations, the central bank believed it was appropriate to allow for dividends and distributions to resume.This move will benefit Panjam Investments Limited (PJAM) which was unable to access the $998.7 million in dividends that should have been received from its associate Sagicor Group Jamaica (SJ). Although PJAM managed to navigate the pandemic due its large cash reserves and real estate holdings, it was forced to suspend its May and August dividend payments to shareholders due to that missing cashflow from SJ.PROVEN Investments Limited will be the next big beneficiary as it had to wait for the moratorium to expire to collect the $97.8 million (US $679,594) dividend from its associate company JMMB Group Limited. As seen with PJAM's case, PROVEN had to cut its third-quarter dividend payment by 63 per cent from US$2 million to US$750,370 due to the reduced dividend income on its cashflow.Despite the improvements to those investment holding companies, several companies still maintain a cautionary stance due to the uncertainty yet lingering in Jamaica and the world because of COVID-19.NCB Financial Group Limited (NCBFG) has been the only major financial company to not pay a dividend in the pandemic although its competitors paid out dividends to those who held less than 1 per cent of outstanding shares in 2020. The financial holding company which made its last payment in March 2020 reaffirmed its stance on retaining capital earlier this week as it noted that it's not intending to recommend a dividend for its second quarter at its board meeting set for April 29.Due to the absence of dividends, AIC (Barbados) Limited has reduced its stake in NCBFG since March 2020 by 0.71 per cent or $2.5 billion which is equivalent to the company's last $1.00 payment. However, NCBFG has continued to collect dividends from NCB Jamaica Limited, with its 2020 payment increasing by 56 per cent to $13.2 billion. So, although NCBFG has not been paying dividends to its shareholders, it has continued to collect capital from its core subsidiaries.Some brokerage firms reduced their payments to shareholders and saw dividend income from subsidiaries reduce as well. Mayberry Investments Limited had cut its 2020 dividend in half to $150 million while VM Investments Limited collected 84 per cent less dividend income primarily from its VM Wealth Management subsidiary, which totalled $45.2 million. Only Barita Investments Limited increased its dividend payment to shareholders which was 40 per cent higher at $1.81 billion, with the firm paying $809.9 million in February. Barita's dividend income was impacted by the BOJ's measure as that line item fell by 72 per cent to $8.7 million. Several pension funds and unit trusts were significantly impacted by the missing dividend payments compounded by lower asset valuations in 2020.FX OUTFLOW TO INCREASE WITH FUNDS REPATRIATIONWith there no longer being any limitations on dividend outflows, an increase in foreign exchange (FX) outflows is expected as the large corporate conglomerates repatriate dividend income to their main territories. Sagicor Financial Company is expected to collect US $11.3 million ($1.63 billion) in inter-company dividends, with more expected shortly as its subsidiary SJ considered payment last Friday. Scotia Caribbean Holdings Limited, which is a subsidiary of Scotiabank Canada, should net US $15 million ($2.2 billion) from outstanding payments, with another US$6 million ($893.4 million) coming on April 22 when Scotia Group Jamaica pays out its latest dividend.Even with all this FX outflow coming within the short term, vice-president of investor relations at GK Capital Management, Ryan Strachan noted that the possibility for an upward sloping of the USD-JMD rate exists but is also subject to what the treasury of some firms decide to do.'The possibility exists, but there are potential counterbalancing circumstances at play. On one hand, some investors/holding companies would eagerly anticipate dividend payments. On the other hand, the operating companies and their treasury officers would aim to retain higher cash balances in light of the uncertainties ahead. One could reasonably anticipate lower-than-usual dividend payments for the time being.'One notable company which had difficulty in sourcing inter-company dividend inflow was Guardian Holdings Limited (GHL) which suspended its most recent payment due to this issue. The Central Bank of Aruba, Centrale Bank Van Curacao en Sint Maarten and the European Central Bank halted dividend payments outflow from their respective territories in 2020.However, in an email sent to the Jamaica Observer, Guardian's Chief Executive Officer (CEO) Ravi Tewari stated: 'We did experience an element of restriction during 2020. Although we did encounter an element of difficulty to convert J$ to US$ for dividend remittance, we are of the view this is market dynamics and nothing specific to the GHL Group and/or the Jamaican central bank.'Guardian Life Limited (GLL) which is GHL's best-performing subsidiary from a profit standpoint, paid $1.92 billion in dividends to its parent company. This came even in the context of GHL raising $13.4 billion in debt which it invested directly into GLL for its acquisition of NCB Insurance Company's $35-billion insurance portfolio.Based on his personal assessment Strachan believes the BOJ's recent moves, especially in this evolving environment, will fare well for those who are very observant of the USD-JMD foreign exchange rate.'I expect the status quo of the past 12 months to remain, as tourism inflows are expected to gather pace and 2020 remittances surpassed even my expectations. Generally speaking, the market seems to have its brightest days ahead and the Bank of Jamaica has done a great job of facilitating balance within a free market,' Tewari said. »» View story

   • 4 years ago  • 1

More than likely the persons who got in at the APO taking profits, driving the price down. Wouldn't think its a cause for concern yet. #PROVEN is a good long term stock

   • 4 years ago  • 3

Well they did say they have prospects in sight, before the APO
So it should be expected right? #proven

Proven Investments Limited (PROVEN) has advised that on March 16, 2021, the Company entered into a Share Purchase Agreement with Fidelity Bank & Trust International Limited (a company incorporated in the Commonwealth of The Bahamas) to acquire the entire issued share capital (Shares) of Fidelity Bank (Cayman) Limited (FBCL), conditional on receiving approval by the […] The post Proven Investments Limited (PROVEN) – Share Purchase Agreement with Fidelity Bank and Trust International Limited appeared first on Jamaica Stock Exchange. »» View story

   • 4 years ago  • 1