20 per cent of BOSVG shares soon available to public

Twenty per cent of the government’s shares in the former National Commercial Bank, now the Bank of SVG (BOSVG) are expected to be available on the market at $8.64 a share.{{more}}

Prime Minister Dr Ralph Gonsalves said on Tuesday that the valuation, although delayed, was ready, and that 20 per cent of the total 40 per cent of shares owned by the government will be divested to members of the general public.

Fifty-one per cent of the then NCB was sold in 2010 to the St Lucian firm East Caribbean Financial Holding Company (ECFH), with the government retaining 49 per cent.

Five percent of the shares were sold to the National Insurance Services (NIS) and four percent sold to the employees of the BOSVG, with the promise of divesting a further 20 per cent to the public.

The prime minister said that the value of the shares was slightly higher than the original price announced.

“So, even after a year, the shares have gone up and I hope that Vincentians will buy the shares,” he said.

The Bank recorded an EC$5 million net profit in 2011 and according to Gonsalves, the shareholders have agreed to share 30 per cent of this profit, which amounts to $1.6 million.

There are currently 10 million shares, the prime minister said, which works out to 16 cents a share in dividends and would mean that the St Lucian company, with 5.1 million shares will receive $816,000; the government with 4 million shares will receive $640,000; the NIS with 5 percent will receive a little under $130,000 and the staff with 4 percent will receive just over $14,000.

“The rest of the dividends, which will be ploughed back into the Bank will strengthen the capital base of the bank which will be good for lending etc…,” Gonsalves said.

The bulk of revenue generated from the divestment of the shares

in the Bank will be put towards the construction of the Argyle International Airport, the prime minister said. (DD)