Sagicor Financial Corporation is currently entertaining healthy discussions with AmTrust Financial Services surrounding the sale of their European arm Sagicor Europe Ltd (SEL) and its associated subsidiaries. The Trinidad Express reports that ‘SEL is a Cayman Islands — domiciled holding company and the sale also includes a reinsurance entity’.
Such a sale would leave Sagicor pocketing 37% (£15 million) in excess of the net asset value of its European subsidiaries, which are valued at £56 million as at December 31, 2012.
Why this move?
“Sagicor entered into this sales process to enable SAL to have access to more capital to fund its business growth,” said SFC president and CEO Dodridge Miller. “We believe this transaction will be beneficial to our shareholders.”
As the Express stated, ‘Sagicor provides financial services in the Caribbean. Operating in 22 countries, including Trinidad and Tobago, the United Kingdom, the USA and Latin America, Sagicor has total assets in excess of US$5.5 billion. Sagicor is listed on the stock exchanges of Barbados, Trinidad and Tobago and London.’
What are some of the implications of such a deal being sealed? Let us know your thoughts in the comment section below.