ADAMANT that it is the wrong time to sell shares “at the current depressed price”, businessman Tony Hoyos has resigned as a director of the Barbados National Bank (BNB).
Hoyos’ resignation which took effect on Friday comes on the heels of the Republic Bank of Trinidad and?Tobago’s plan for 100 per cent control of BNB.
“I have therefore decided that I cannot sit idly by while the shares of BNB owned directly by over 1 500 minority shareholders or indirectly by the people of Barbados through the Government and NIS are sold at a depressed price.
“I took legal advice on the propriety of making my personal opinion public while still a director of BNB and was advised against it. Therefore, with great regret, I resigned from the board of directors of BNB on Friday,” said Hoyos, who has been a director for the last 16 years.
Hoyos recommends that BNB shareholders, including the Barbados Government and NIS, do not sell their shares in BNB at this time at the current market price of $5.57.
He told the DAILY?NATION that he would not be interested in a price of less than $7.20 per share.
Of the 35 per cent shares the Republic Bank of Trinidad is trying to acquire, the Barbados Government owns 18 per cent, National Insurance Scheme ten per cent and seven per cent owned by individuals and companies.
Hoyos, a director since October 1994, said the intrinsic value of the shares was worth more than the current price.
“While I agree with the principle of the Government disposing of its shares in commercial enterprises, I however, disagree with the sale taking place at the present Stock Exchange price which is extremely depressed, due to the economic downturn which has negatively affected the prices of all shares quoted on the Exchange.
“To agree to this low price is to say in effect that BNB’s best days are behind it and that there is no confidence in the organisation to recover.
“I agree with neither of those assumptions. I believe that BNB’s earnings will rise again to their previous levels and beyond as the economic depression recedes,” he said.
Hoyos was of the view that the BNB had many strengths, including excellent market share, experienced staff, an extensive branch network and a new information technology system which will deliver improved customer service, all of which position it for a strong recovery as the economy itself recovers.
