|Last Updated: Aug 16th, 2023 - 00:35:01
Almost two years to the day of surrendering their shares, Patrick Hylton and Dennis Cohen were turfed out of National Commercial Bank (NCB).
The July 13, 2021 advisory posted on the Jamaica Stock Exchange’s website was as vague as could be, it made no mention of what value was received by Hylton and Cohen for the tendered shares given that the shares were accumulated by both over a period of years and were fully vested. What we do know is that those shares ended up in the holdings of MF&G Asset Management Limited- NCB Share Scheme.
On the date of the surrender the stock price averaged $145.26 for the 95.0 million shares valuing it at $13.8 billion, those shares on the date of separation (July 18, 2023) closed at $65.33 for a value of $6.2 billion. The difference of $7.6 billion is worth the fight; Hylton and Cohen would look like geniuses and Michael Lee-Chin like an egg head.
The accounting for the surrender makes no sense, the other side of the double entry needs explanation. Where did the cash go from NCB Share Scheme or is it liable to the previous holders? If so, why is Lee-Chin in negotiation with the guys?
Shareholders should demand to know the nature of the surrender as it has huge implications for the future earning of the bank and the regulators ought to review the agreement for disclosure breaches.
In my opinion this matter cannot go to court as both parties might be exposed.
Source: Jamaica Stock Exchange, Jamaica Gleaner
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