GraceKennedy has exited its decade-old investment in Trident, a general insurer based in Barbados, and is reporting a gain from the sale of its 30 per cent stake in a deal finalised on Monday.
The conglomerate sold its share in Trident for $56 million or just over BBd$800,000 to existing shareholders Leo Leacock & Company Limited and Asjam Holdings Limited, Group CEO Don Wehby told Gleaner Business.
In 2007, GK Financial Group invested US$1 million in the Barbados company, which translated to $69 million at the time. Wehby said the investment had paid for itself over the decade, and that the sale proceeds would be reported as a gain.
Wehby said GK decided to offload Trident so as not to hamper current plans for regional expansion of its financial services.
“It wasn’t a bad buy, but strategically, it wasn’t moving in the same direction that we want to move,” the GK boss said. “What would have happened if we had maintained our interest in Trident is that I foresee that there would have been some amount of conflict, because we’re using a different vehicle to expand.”
Through subsidiaries GK General Insurance and GK Insurance (Eastern Caribbean) Limited, GraceKennedy Limited is licensed to offer insurance in Jamaica, Turks & Caicos Islands, St Lucia and Dominica.
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