PETER GANTEAUME, chief executive of Guardian Holdings, has announced the acquisition of Fatum Holding NV in a move that has widened his company's insurance business as well as its reach across the Caribbean.
The US$52.47 million acquisition was financed largely by a US$35 million loan, while the remainder of the purchase price was satisfied from Guardian's "internal cash resources", for a 67:33 per cent debt-equity mix, Ganteaume said in a release.
MARKET LEADER
The deal with former owners ING Group NV, gives Guardian 99 per cent of Fatum's issued share capital, while ING retains one per cent. Fatum Holding comprises three companies spread across the Netherlands Antilles and Aruba and "is currently the market leader in insurance business in those territories," having operated there since 1904 - almost a century - according to Guardian.
The company also has a presence in Bonaire and St. Maarten, as well as employees operating in Curacao.
The Fatum deal was completed December 13, last year, pending central bank approval of the transfer of shares. The effective date of acquisition was January 1.
ING will retain its one per cent interest in the company for a period not exceeding two years.
ACCESS TO PENSION BENEFITS
Ganteaume said the acquisition will give Guardian "access to pension and employee benefits business to complement its dominance of individual life business in other Caribbean territories."
Last November, Ganteaume, speaking in Jamaica, disclosed that Guardian Holdings' investment decisions were made based on two factors - its vision of developing into 'a truly Caribbean company' and shaping itself into a financial conglomerate.
Locally, the Trinidad-based Group's interests include Guardian Life and Boscobel Beach Hotel, which is held under a company called Ocho Rios Beach Limited but managed by the Sandals group under its Beaches brand.
