By Al Edwards, Business Co-ordinator
Donna Duncan-Scott, managing director of Jamaica Money Market Brokers. - File
JAMAICA MONEY Market Brokers (JMMB) managing director, Donna Duncan-Scott in a concerted effort to wrest more control of her mother's company has offered to purchase Grace, Kennedy and Company's shares in Jamaica Venture Fund (JVF).
Grace, Kennedy currently holds a 3 per cent stake in JVF which equates to approximately 200,000 shares valued at $6 million.
Wednesday Business understands that Mrs. Duncan-Scott and "friends" offered Grace $45 a share, with the conglomerate looking for a substantially higher figure.
JMMB was established in 1992 as a joint venture of the National Development Bank, Mutual Security Bank, Jamaica Producers, Jamaica Venture Fund and Antrim Ltd. JVF has a 25 per cent stake in JMMB, and Dr. Noel Lyon, JVF's managing director also serves as chairman of JMMB.
In an effort to prevent the Government holding an interest in JMMB, Mrs. Duncan-Scott acquired the National Investment Bank of Jamaica's (NIBJ) 30 per cent stake in Jamaica Venture Fund.
But, it is not JMMB per se that is in share acquisition mode but rather a group going under the name of "Donna Duncan and friends".
NCB, another shareholder in JMMB, has also expressed an interest in increasing its share in JVF and to that end has made overtures to Grace, Kennedy to acquire its interest in the local venture capital fund. NCB presently has a 12 1/2 per cent interest in JVF and a 12 per cent stake in JMMB. NCB's managing director Christopher Lowe said: "We are currently trying to maximise the value of our investments and we have indicated that if there is a market for the shares of JVF we would indeed be interested. JMMB is a very good company and it comes as no surprise that parties that have made an investment in it would be looking to maximise on such investment."
JMMB recently reported a $552.2 million net profit for the financial year ended February 28, 2002, improving on the previous year's figure by 66.4 per cent. The company serves 60,000 clients with investments of $40 billion from seven locations.
JVF was formed in 1991 and within its first two years had a subscribed capital base of J$100 million contributed by 21 companies. It was a leading investor in the US$22 million Braco Village Resort based in Trelawny.
Mr. Lyon has said the main criteria used in the assessment of potential investees are the scale of the operations and their potential to earn foreign exchange. He stressed that the JVF does not seek to acquire controlling shares but stipulates that a JVF representative sits on the board.
In the current climate of corporate governance and transparency, concerns have been expressed in some business quarters about the number of JVF members who have an interest in JMMB more particularly Dr. Lyon's dual position of managing director of JVF and chairman of JMMB. JVF is expected to hold its annual general meeting at the end of this month where this issue will be discussed.
Both Mrs. Duncan-Scott and Dr. Lyon were unavailable for comment yesterday.
