Last update: 06-Dec-2013 8:12 am
Friday, December 06, 2013
Trinidad & Tobago Guardian Online
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NEL makes $529m after tax profit
National Enterprises Limited (NEL) owns 1,279,895 shares in First Citizens as a result of it’s investment in the bank’s Initial Public Offering (IPO). The announcement was made yesterday by chairman Kenny Lue Chee Lip at NEL’s Annual General Meeting (AGM) at the Hyatt Regency in Port-of-Spain. Challenged by one shareholder that he wasn’t forceful enough in securing a larger percentage in First Citizens, Lue Chee Lip said NEL was classified as a company, not a mutual fund, and could not get a larger chunk of the bank.
“Unfortunately the government did not allocate us a separate tranch of shares like they did with the mutual funds—UTC. We had to compete with everyone in the companies section for shares in First Citizens. I think that was approximately three per cent of what they offered to the public. We did try to make a significant investment. We were fighting for ten per cent of all the other companies who were vying for shares from First Citizens,” he explained.
Lue Chee Lip said the IPO investment is the “first addition of equity shareholding in NEL’s portfolio.” In its consolidated statement of comprehensive income for the period ended March 31, NEL is reporting after tax profits of $529,915,000 which can be compared to $603,237,000 in 2012. The company’s liquidity position increased this year compared to 2012.
According to its consolidated statement of cash flows for the period ended March 31, net cash resources at the end of the year totalled $776,283,000 compared to $680,106,000 in 2012. Lue Chee Lip reiterated that NEL was looking for investments which were “sound, stable investment opportunities to improve shareholder value.” Overall, he declared the year a “successful” one.
“NEL’s mandate of ensuring that it is a secure home for mature, profitable and stable companies must and will be maintained to ensure that the company and shareholders are not exposed to risks,” he said.
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