Proven to redeem preference shares three years early
PROVEN INVESTMENTS Limited will redeem all outstanding preference shares that were due to mature in year 2021 to clear some of its debt.
The early redemption of the PIL 8.25% cumulative redeemable preference shares will take place on the next interest payment date of June 15, 2018.
“The company will pay out about J$2 billion in the offer,” said President and CEO Christopher Williams.
Proven holds a war chest of cash of around US$89.4 million ($11.35 billion), according to its newly released year-end financial results, which it uses to quickly secure acquisitions. It will tap those holdings to redeem the shares, as there is no imminent deal in the making.
At the current trading price at $5.17 per unit, the shares are worth $2.17 billion. The payout will eliminate all of Proven’s preference shares, while freeing the company to go after opportunities as they arise.
“We decided to reduce our leverage, and if we see a better opportunity then we will go for it,” said Williams, adding that the shares were renewed less than two years ago after an initial listing five years ago. “We may one day in the future go back to the market,” he said.
At year ending March 2018, Proven Investments reported a dip in net profit to US$5.7 million from US$8.9 milllion, notwithstanding a 46 spike in revenue, which rose from US$24.8 million to US$36 million. However, discounting the extraordinary item related to its acquisition of Bank of Saint Lucia International Limited in 2017, profit is up eight per cent.
In January, Proven announced that it would acquire an unnamed securities dealer based in the Cayman Islands, which caters to rich clients. Williams on Wednesday said they have received about two-thirds of the regulatory approvals to date.
The details of the acquisition are being withheld on the request of the seller until completion of the transaction. The securities dealer has nearly 2,000 high net worth clients.