By Andrew Green, Staff Reporter
THE $2.65 billion investment made by AIC chairman Michael Lee-Chin in National Commercial Bank (NCB) is now worth $28.7 billion.
Mr. Lee-Chin acquired just over 75 per cent of the bank in March of 2002. At the latest selling price of NCB shares yesterday, a 75 per cent stake would be worth $28.7 billion, a profit of $26 billion.
But the deal with Mr. Lee-Chin was for a total of US$127 million, with an initial payment of $2.65 billion (US$56 million), and the balance of US$71 million being paid in eight annual instalments. As at March 31 last year, the first instalment would have amounted to $499 million, bringing his payment so far to $3.2 billion.
"No one has become wealthy without using other people's money," Mr. Lee-Chin told The Gleaner in an interview during 2002. "If you don't have money working for you to start the compounding process you don't stand a chance."
SHREWD
"He is a shrewd businessman," said Jason-Craig Watson, equity trading manager at FirstGlobal stockbrokers. "He has an eye for opportunity and is willing to take risk."
So shrewd is Mr. Lee-Chin that the 34 cent per share dividend paid by NCB last March would have easily covered his $499 million payment that year.
Keisa Ansine, research analyst at Mayberry Investments, said, "For any businessman who sees a deal, it is just common sense to go for it."
Smart investors take that approach, she said. "They look for companies that are under-valued and take a position there."
To be successful in the long run doesn't require a stratospheric IQ, unusual business insight or inside information, Mr. Lee-Chin said. "What is needed is a sound intellectual framework for decisions."
