Tonight the senior management of Heritage Bank is working feverishly to push back rumors that the bank could come under new ownership. This is after reports emerged of the bank's shares being auctioned in the Caribbean by a former shareholder. This emerges at the same time of rumors that the Ashcroft Alliance - which recently took over Scotiabank's operations - may have an interest in Heritage.
Yesterday the Prime Minister told us any change in the ownership structure of this bank - which is one of Belize's 3 commercial banks - would be subject to review by the Central Bank.
John Briceno, Prime Minister
"Well, that is a matter the Central Bank deals with, not the Ministry of Finance. Obviously as a government we also have a responsibility to ensure whatever is done it does not jeopardize the banking sector. The banking sector is paramount to a thriving economy to have confidence in Belize and to have confidence in the peg, the two to one peg, so it is something we can't take lightly. Nothing has come to me at this point. I wasn't even aware it is already up for auction, but it is something we would have to take a close look."
The Managing Director of Heritage, Stephen Duncan says the shares aren't up for auction. He explained that an Antiguan business interest is trying to divest of minority shareholdings in Heritage Bank:
Stephen Duncan, Managing Director, Heritage Bank
"I am not sure what is happening with those shares. The shares are not held by us, they are held by an investor, naturally. And the investor is an Antiguan company, it's an Antiguan bank actually, but the bank is, it fell on hard times about ten years ago or eleven and went into receivership. That bank is now in liquidation, so they're going to liquidate it. One of the assets that bank holds is a block of shares in Heritage International Bank and I suspect, I am aware that the liquidator wants to sell those shares. I believe that is what is probably triggering the rumors."
"Clearly under Belize's law, the Central Bank has to have a say in that, so whoever they find that they wish to sell the shares to, Central Bank will have to make a determination, putting that people through the normal fit and proper due diligence and that type of thing will happen. Also at the bank level, the bylaws of the bank has what is called the preemptive rights in that shares ought to be first offered to existing shareholders before they go to a new shareholder."
"The majority shareholder will still continue to control the bank even after the sale. So now without the sale, the bank is running and has been growing and has been performing well and so we expect that to continue, even after the sale."
"These shares have been on the block for about ten years, it's not a new thing, but the liquidator has not so far been able to sell them."
"I think it's reached the point where the bank is now more attractive to potential investors based on our steady continuous performance for the last 11 years."
Courtney Menzies:
"And have you heard reports of the Ashcroft Alliance being interested in these shares?"
Stephen Duncan, Managing Director, Heritage Bank
"Just in the news last night, I didn't hear that before, it's the first I heard of that was last night in the news with one of the media houses. That never came to my attention before and I can assure you that no discussion has been held between us and the Ashcroft group."
Duncan says the majority shareholdings in Heritage continue to be held by Chairman Richard Sutton - and he has no plans to sell.
