When Micheal Lee-Chin bought NCB I am not sure he dreamt that in six-years his investment would pay off so quickly. The Observer presents a very interesting peice worth reading
Yesterday, National Commercial Bank’s (NCB’s) share price closed on the Jamaica Stock Exchange (JSE) four cents lower than the day before. But for Michael Lee Chin, the price of $23.94 a share was more than seven times the price he would have paid per share back in 2002 when he bought a majority stake in the bank.
How much did he purchase NCB for in 2002?
Lee Chin bought a75 per cent stake in NCB back in 2002 for US$127 million (J$6 billion in 2002), of which US$56 million (J$2.65 billion) was made as a downpayment.
How much did he actually pay down to purchase his stake in NCB?
Considering that only J$2.65 billion was paid down, earnings from dividends and share sales would have taken care of the rest of payments that were made in tranches over the years following 2002, reflecting an even higher return on his initial investment.
The discussions will rage whether or not it was a good deal for Jamaica but for Micheal Lee-Chin, the deal has more paid off.
Source: NCB deal eightfold