Citizens will get an opportunity to own shares in the state-owned First Citizens Bank, which will be merged with the Trinidad and Tobago Mortgage Finance Company to create a new institution called Trinidad and Tobago Mortgage Bank.
Finance Minister Winston Dookeran announced the change in his 2012 budget presentation Monday, noting that State will continue to own the bank.
Dookeran said the Government will issue an initial public offering of shares in First Citizens, which will "assist the Bank in widening its capital base and so facilitate its expansion programme in which the Bank is currently engaged.”
Dookeran said that the Government is planning a two-phase approach to divesting state enterprises. The first phase of the programme would involve the securing of strategic investors for a numbers of state enterprises.
He said this will be done through public offerings and the Trinidad and Tobago Stock Exchange. The public would be able to own shares in Point Lisas Industrial Port Development Corporation Limited and the mortgage bank and First Citizens, he said.
Dookeran said that the Government is continuing with the technical work and due diligence exercises in the remaining state enterprises.
“We envisage a second phase of the programme which would involve, where appropriate, the implementation of further public offerings or the securing of strategic investors for some of those enterprises,” he said.
Dookeran stated that the intention is to modernise all state enterprises with best practice corporate governance structures in their administration.
“We are ensuring through the modernisation of our state enterprises that the citizens of this country are provided with affordable, transparent and customer-focused services and an opportunity to share in the ownership of these enterprises.”
Group CEO of First Citizens, Larry Howai, welcomed the move.
Finance Minister Winston Dookeran announced the change in his 2012 budget presentation Monday, noting that State will continue to own the bank.
Dookeran said the Government will issue an initial public offering of shares in First Citizens, which will "assist the Bank in widening its capital base and so facilitate its expansion programme in which the Bank is currently engaged.”
Dookeran said that the Government is planning a two-phase approach to divesting state enterprises. The first phase of the programme would involve the securing of strategic investors for a numbers of state enterprises.
He said this will be done through public offerings and the Trinidad and Tobago Stock Exchange. The public would be able to own shares in Point Lisas Industrial Port Development Corporation Limited and the mortgage bank and First Citizens, he said.
Dookeran said that the Government is continuing with the technical work and due diligence exercises in the remaining state enterprises.
“We envisage a second phase of the programme which would involve, where appropriate, the implementation of further public offerings or the securing of strategic investors for some of those enterprises,” he said.
Dookeran stated that the intention is to modernise all state enterprises with best practice corporate governance structures in their administration.
“We are ensuring through the modernisation of our state enterprises that the citizens of this country are provided with affordable, transparent and customer-focused services and an opportunity to share in the ownership of these enterprises.”
Group CEO of First Citizens, Larry Howai, welcomed the move.
He issued a statement indicating that the bank was “very pleased that, as announced in today’s budget presentation, the Government of Trinidad and Tobago has accepted our recommendation to allow citizens to own shares in First Citizens through an initial public offering for the very first time in our history.”
Howai said the banking group has continued to perform “robustly” with a capital base of $4.9 billion in 2010 and before-tax profit of $343.6 million for the six months period ending March 2011.
Howai said the banking group has continued to perform “robustly” with a capital base of $4.9 billion in 2010 and before-tax profit of $343.6 million for the six months period ending March 2011.
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