Mon | Jan 20, 2020

VM deal values Carilend above $350 million

Published:Wednesday | November 20, 2019 | 12:14 AM
Rezworth Burchenson, CEO of Victoria Mutual Investments Limited.
Rezworth Burchenson, CEO of Victoria Mutual Investments Limited.

Victoria Mutual Investments Limited, VMIL, paid $106 ­million for its near one-third stake in fintech company Carilend, ­according to new disclosures.

It values Carilend, a Barbados-based online loans provider, at around $353 million. VMIL ­previously disclosed the deal in September but not the price of the acquisition.

In its third-quarter earnings report, VMIL said any ­adjustment for goodwill on the 30 per cent acquisition of Carilend, a $106.03-million deal, would be finalised by the end of December.

VMIL reported a profit of $244.6 million on revenues of $537.3 million for the quarter ending September. On a per-share basis, its earnings rose to 16 cents from 10 cents in the 2018 period. Over nine months, earnings doubled from 16 cents to 33 cents per share.

The Carilend platform will allow VMIL to offer quick microloans in Jamaica. In Barbados, the online platform facilitates ­person-to-person lending by matching ­borrowers with lenders, but services in Jamaica will focus on online lending from VMIL to clients. The distinction is due to local laws, which VMIL said precludes ­person-to-person lending.

The investment resulted in VMIL getting two seats on Carilend’s five-member board of directors.

Carilend Caribbean Holdings began operating in Barbados in 2016 but made headway quickly in that country. It also plans to enter Trinidad & Tobago.

The company was co-founded by CEO Mark Young, a former Barclays and CIBC FirstCaribbean banker, and Mark Linehan, a former telecom executive who headed ­different Digicel operations, including Jamaica.