THE National Investment Bank of Jamaica (NIBJ), which had taken equity by way of ordinary and preference shares in the local Internet company, InfoChannel Limited, has sold its shares to Patrick Terrelonge, the company's principal shareholder, at a premium that reflects the profitability of the company.In addition, a release from the Bank said, NIBJ was paid the dividends accruing from its preference shares from the date of investment to the date of exit.
NIBJ's president, Rex James, said in a statement that he was pleased to be associated with the establishment of InfoChannel which is a "powerhouse" among information technology businesses in Jamaica. NIBJ's role in the start-up of the company, he continued, embodied his vision of how NIBJ "ought to and will operate" as a true investment bank which fuels the growth and development of the national economy.
"With the proceeds from our investment in InfoChannel, NIBJ will be able to participate in the establishment of other companies. In this way, we are not only clearing the way for new equity to be injected into the companies that we are exiting, but we are also assisting the entrepreneurs in our economy," he said. "This will contribute to a revolving pool of funds, if you will, to invest and re-invest in the economy. This, in my view, is how a true investment bank ought to function and it is the path forward for NIBJ," he said.
As part of the Government's National industrial Policy to support strategic sectors (those areas of the economy which offer, among other things, excellent prospects for earning foreign exchange and providing employment) NIBJ had invested in the establishment of InfoChannel in November 1995.
Commenting on this latest development, Chief Executive Officer of InfoChannel, Patrick Terrelonge, said he was pleased to have been able to work with the NIBJ to establish the company. "Our experience with the Bank shows what can be accomplished when the right opportunities are created to drive business ideas," Mr. Terrelonge added. He said he wished there were "more organisations that would follow the example of NIBJ in investing in new technology ventures."
InfoChannel was the first company to publicly market online distribution services and, after a landmark legal success against Telecommunic-ations of Jamaica in 1996, became the first commercial entity to provide Internet services in the country.
In spite of other legal challenges launched against it, InfoChannel has emerged as one of the most popular and successful Internet Service Providers in the island.
Last year, InfoChannel announced that it had signed an agreement with the United States-based company, Centennial, to be its partner in a joint venture.
