Home' Trinidad and Tobago Guardian : October 19th 2014 Contents SBG6 NEWS
SUNDAY BUSINESS GUARDIAN www.guardian.co.tt OCTOBER 19 • 2014
According to Rule 604 of the TT Stock
Exchange (TTSE) "Every listed company shall,
through its Company Secretary or other rel-
evant company official notify the Exchange
of all trades done by directors, senior officers
and connected persons, within five (5) business
days of the transaction." "Connected persons"
for the purpose of this rule, are persons who
are deemed to be connected with a
director/senior manager; the director s /senior
manager s, husband or wife, minor children
(these include step-children and adopted chil-
dren), dependents and their spouses; and bod-
ies corporate of which the director/senior man-
ager and/or persons connected with him
together have control.
Recent research reveals that over the past
year or so, in compliance with the above rule
JMMB has advised the TTSE of the following
• October 10, 2014 a connected party sold
5,000,000 JMMB shares.
• September 18, 2014 a connected party
sold 1,000,000 JMMB shares.
• March 26, 2014 a connected party sold
384,132 JMMB shares.
• March 25, 2014 a connected party sold
270,007 JMMB shares.
• During the period March 17 - 18, 2014
five connected parties sold a total of 9,663,800
• March 4, 2014 a connected party sold
1,500,000 JMMB shares.
• February 17, 2014 a connected parties sold
a total of 19,464,448 JMMB shares.
• September 30, 2013 a connected party
sold 1,359,300 JMMB shares.
• September 20, 2013 a connected party
sold 1,000,000 JMMB shares.
• September 19, 2013 a connected party
sold 115,215 JMMB shares.
• September 9, 2013 a connected party sold
160,000 JMMB shares.
• September 5, 2013 a connected party sold
1,000,000 JMMB shares.
• August 28, 2013 a connected party sold
300,000 JMMB shares.
• August 20, 2013 connected party sold
220,000 JMMB shares.
This adds up to a total of 41,436,902 shares.
Firstly, I wish to commend JMMB for their
strict compliance with these disclosure require-
ments and encourage them to continue to
faithfully do so. However, I am somewhat con-
fused and my confusion or "cognitive disso-
nance" stems from the fact that I also noted
inter alia in a Trinidad Guardian publication
dated September 22:
Directors recently sought and obtained
approval (from shareholders) for a new scheme
of arrangement for JMMB Ltd that will see
the transfer of ownership of the subsidiaries
across the region and JMMB Ltd., to a holding
company called JMMB Group Ltd.
The Group CEO Keith Duncan indicated
that "The group s core earnings and core profits
continued on an upward trajectory, with rev-
enue growing by 13.88 per cent and a 17.10
per cent growth in profits year-over-year",
despite the challenging economy in Jamaica.
In terms of the timeline for the Group
to reap further benefits, the CEO informed
shareholders that "As we complete our targeted
acquisitions across the region, we expect to
see a positive impact of the build-out of the
group s integrated financial services model
over the next two-five years. This will result
in increased long-term sustainable returns to
all our shareholders; which will be a win/win
for all stakeholders."
Accordingly, the above begs the question:
Who are these connected parties and more
importantly why are they selling their shares
at this time? I believe it was the BG Editor,
Anthony Wilson who, some weeks ago, dared
to ask a similar question in the case of Republic
Bank but was summarily dismissed as being
"irresponsible." I trust that I shall not have to
suffer a similar fate.
It should be noted that neither JMMB nor
the TTSE has any legal obligation to publicly
disclose this information. However, I am per-
suaded that JMMB or any listed-company
that finds itself similarly circumstanced, at
the very least, owes its shareholders an expla-
The JMMB Group wishes to thank you for
seeking a response from us, to this query. As
a publicly-listed entity, JMMB takes the whole
matter of transparency very seriously and we,
therefore, welcome the opportunity to respond
to queries put forward by concerned investors.
As the letter writer to your publication accu-
rately pointed out, for over a one-year period,
some JMMB shareholders, who happen to be
connected parties, sold a portion of their hold-
ings in JMMB Ltd. JMMB s connected parties
comprise of a number of individuals and enti-
ties, each with their own unique circumstances
and financial objectives that guide their own
personal decisions around the composition of
their investment portfolios. As such, we wish
to reiterate that those decisions to sell shares
in JMMB Ltd. are done for personal reasons,
that have nothing to do with JMMB s oper-
ations or future success.
As our Group CEO relayed at our recent
annual general meeting on September 18 held
in Jamaica and transmitted live via webcast,
our core earnings and profits continued on an
upward trajectory. We remain excited about
the prospective successes that the company,
and its shareholders, will continue to enjoy,
as we implement our strategy of becoming a
regional integrated financial services provider.
We thank you again for allowing us to
respond in this way, and invite you to ask any
additional questions that you may have.
In Thursday's BG: JMMB CEO, Keith Duncan,
talks exclusively about the future of the financial
Permell: Why are JMMB's connected
parties selling their shares?
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