With the sale of 90% of the share-capital of GNCB Trust Corporation Inc. to the Hand-in-Hand Mutual Fire Insurance Co. Ltd, the privatised institution can become a commercial bank at the buyer’s option.
This was disclosed yesterday in a joint release from the Privatisation Unit, the Finance Ministry and the Hand-in-Hand Group.
Total proceeds from the sale of the 90% amount to over US$2.2 million, and combined with dividends of $63,325,150 paid in late October, total proceeds from the privatisation of GNCB Trust amount to over $500,000,000, the release stated.
The release said that under the terms of the privatisation, Cabinet has agreed that the privatised GNCB Trust can become a commercial bank at the buyer’s option, subject to compliance with the regulatory requirements.
Pursuant to the sale of the shares, ownership of the Trust was transferred to the Hand-in-Hand Group on November 14, and on December 1, all employees were severed following privatisation and immediately rehired.
GNCB Trust, under the ownership of Hand-in-Hand, has paid full severance to all its employees, inclusive of outstanding leave and leave-passage allowances, the release noted.
The Privatisation Unit had received three bids on September 14, 2001 in response to the Request for Proposals (RFP), and this year the Hand-in-Hand Mutual Fire Insurance Co. Ltd. was announced as the preferred investor, the release informed. And on June 17 the company made a 10% deposit to the Government of Guyana through the Privatisation Unit and the balance of the purchase price was paid in full on November 20.
At a meeting on August 13 between the employees of the Trust, the Privatisation Unit and the selected bidder, plans for the future were outlined by Chief Executive Officer of the Hand-in-Hand Group, Keith Evelyn. The release quoted him as saying then that the acquisition was made in pursuance of the company’s corporate objective of providing a full range of efficient, modern and affordable financial services. He had noted also that GNCB Trust employees could expect improved terms and conditions, and expansion of its current business-activities, along with fringe-benefits and inter-action opportunities with the rest of the Hand-in-Hand Group.
That Group now comprises Hand-in-Hand Mutual Fire Insurance Co. Ltd., Hand-in-Hand Mutual Life Assurance Company Ltd., GCIS Inc., and GNCB Trust Corporation.
The release added that GNCB Trust, with a 42-member staff, is the largest Trust company in Guyana with assets of over $3.8 billion, and also serves as the trustee for a number of pension plans. However, these pension plans do not belong to GNCB Trust and are not part of the privatisation.