NCBCM acquires 29% stake in JMMB
07 Aug 2011
On Friday, August 5, 2011, NCB Capital Markets Limited (NCBCM), a subsidiary of National Commercial Bank Jamaica Limited, purchased 428,777,325 shares in Jamaica Money Market Brokers Limited (JMMB). This acquisition represents a 29% stake in JMMB, which makes it an associated company of NCBCM and by extension the NCB Group. A company is an associated company of another if one of the two has a substantial stake, but not majority ownership, of the other. This usually means more than 20% but less than 50% ownership. More than 50% would make it a subsidiary. "This acquisition of the JMMB shares is good for the NCB group as we continue to identify opportunities to improve shareholders' value and to fortify the financial strength of the institution" stated NCBCM CEO Dennis Cohen. "It is in line with NCBCM's investment management strategy of taking positions in liquid financial assets and does not represent a move to take control of or acquire a majority stake in JMMB," continued Cohen. The purchase has resulted in NCBCM being the largest single shareholder in JMMB. In the Securities industry, JMMB remains the largest in terms of assets under management while NCBCM continues to be the largest in terms of shareholders' equity.
