One of the Caribbean’s largest conglomerates, Jamaica-based GraceKennedy may soon be listing its local subsidiary on the Barbados Stock Exchange (BSE) as it seeks to expand throughout the region, the group’s chief executive has said.
Don Webby, Chief Executive Officer of the GraceKennedy Group told Barbados TODAY on Wednesday that while no decision has yet been taken, the company would consider listing its financial services firm, SigniaGlobe Financial Group Inc., on the local stock exchange.
Listing on the BSE could be a viable option for the company as it sought to expand throughout the Caribbean, he said.
But Wehby did not provide details of the expansion plans or say how advanced those plans were.
Wehby said: “This is something we are always looking at, at the GraceKennedy Group, how to maximize shareholders value and that may in fact be one option, to list SigniaGlobe on the Barbados Stock Exchange.
“Let me also say that this company also has Caribbean plans – to expand outside of Barbados. So listing may be an attractive vehicle to utilize capital for expansion.”
SigniaGlobe Financial was formed in September 2018 when GraceKennedy, the parent company of the then Signia Financial Group Inc. acquired Globe Finance Inc. in a deal estimated at $11.8 million.
Signia and Globe were two of the leading merchant banks in Barbados, competing to provide retail and commercial lending, foreign exchange services and fixed deposits.
With about a 40 per cent stake, GraceKennedy Ltd is the majority shareholder in SigniaGlobe, with other shareholders being Massy United Insurance and Cave Shepherd & Co. Ltd.
Wehby said he was very happy about the exceptional performance of the new entity, adding that it was recording very good profits over the past year-and-a-half.
He told Barbados TODAY: “The merger with Signia and Globe has gone exceptionally well.
“The company is operating in a very profitable manner. Our expectations in terms of the merger is being met.
“SigniaGlobe is meeting all our expectations and the company is operating at a very profitable level. We are happy at GraceKennedy about that acquisition.”
Wehby was responding to questions during a live-streamed investor briefing where he announced that the GraceKennedy Group recorded revenue of approximately $1.5 billion (JA$103.09 billion), an increase of 5.7 per cent over 2018.
This is already ahead of the company’s JA$100 billion target for the year 2022, which was set to coincide with its 100th anniversary.
Wehby indicated that all GraceKennedy’s business segments – banking and investment, insurance, money services and food division – recorded increases in revenue and profits last year, when compared to 2018.
Stating that 2019 was a very rewarding year for the GraceKennedy Group, Wehby said he expected this year to set another record.
He attributed the strong performance of the group to the “dedication and productivity of staff and efficiency in the company’s operations”.
Adding that technology will be a strategic focus for the company this year, Wehby said he anticipated technology and innovation would be a key driver of even greater efficiency gains.
GraceKennedy Group is also expected to complete some acquisitions this year.
marlonmadden@barbadostoday.bb
