Facey
Andrew Green, Staff Reporter
PAN JAMAICAN Investment Trust Limited (Pan Jam) is poised for continued growth and stability, said Stephen Facey, its president and chief executive officer.
This is based on the efforts made to restructure the company over the last four years, he said. He was speaking in an interview at the end of the company's annual general meeting held at the Terra Nova Hotel in St. Andrew last week.
The company has a significant investment in Hardware and Lumber (H&L), "which is number one in that sector," he said. During the last financial year ended December 31, its H&L subsidiary merged with Rapid & Sheffield, leaving Pan Jam with a 25 per cent interest in the new entity.
The merger agreement bet-ween Pan Caribbean Financial Services Ltd. and Manufacturers Sigma Merchant Bank Ltd. signed on December 13, 2003, was executed in 2004. Mr. Facey said, "The bank is well positioned and strong and is able to compete in its area."
Pan Jam subsidiary, First Life Insurance Company, holds 38 per cent of the shares in the newly merged bank. But Life of Jamaica Limited (LoJ) and First Life have concluded an agreement concerning the transfer of First Life's business to LoJ.
AGREEMENT
The agreement calls for First Life to transfer to LoJ its entire insurance business consisting of its ordinary life insurance and health insurance portfolios, group life and pension business with LoJ assuming all policyholder liabilities. In addition, First Life will transfer to LoJ control of its 38 per cent interest in Pan Caribbean.
At the end of the LoJ deal First Life will hold 25 per cent of LoJ's ordinary share capital, Sagicor shares valued at US$13.4 million and 100 per cent of Jamaica Property Company Limited.
"When the deal with LoJ is done, we will have an investment in the largest individual life insurance provider (LoJ) in the country," Mr. Facey said. "It has good strong management."
Pan Jam will also have the Jamaica Property Company, "where we have very solid properties in excellent locations and with excellent tenants," he said. One of Jamaica's leading real estate holding companies, Jamaica Property Company Limited owns and manages prime commercial real estate in the capital including buildings belonging to Pan Caribbean, Jamaica Tourist Board and the IBM on Knutsford Boulevard, Manor Park Shopping Centre and a substantial part of the Scotiabank head office building downtown.
SOLID INVESTMENTS
"We have solid investments in key sectors of the economy," he said. Pan Jam has interests in companies positioned to be the leader or second to the leader in those sectors. "We fully expect the strong growth of the company to continue in the future. We expect to see interest rates coming down with growth in the economy and demand for our services should increase."
He said the changes in the company relied heavily on the strategic vision of Richard Byles, whom he replaced as chief executive of Pan Jam in March. Mr. Byles took up the position of chief executive officer of LoJ, but remains a director of Pan Jam and is chairman of the Group's Investment Committee.
At the annual general meeting last week shareholders approved the interim dividend of 32 cents paid during the year as final dividend for the year ended December 31, 2003. Additionally, retiring directors C.A. Lloyd Facey, Maurice Facey, and Terrence Farrell were re-elected to the board.
