Trinidad government to own regional newspapers and radio stations after bailout
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| Published on Tuesday, February 3, 2009 |
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By Oscar Ramjeet
Caribbean Net News Special Correspondent
Email: oscar@caribbeannetnews.com
PORT OF SPAIN, Trinidad: The government of Trinidad and Tobago is set to become the largest shareholder of One Caribbean Media (OCM), the parent company of the Trinidad Express, CCNTV-6 and the Nation newspaper in Barbados, as a result of its bail out of CLICO, the country's largest insurance company.
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| Central Bank Governor Ewart Williams. AFP PHOTO |
The Trinidad Guardian reported that, according to OCM's 2007 annual report, CLICO owns 15.4 million shares in the media group, making it the largest single shareholders in the company, which is listed on the stock exchanges in Trinidad and Tobago and Barbados. Additionally, CLICO’s stake in CCN was equal to 23.4 per cent of the company, as at the end of 2007. It could not be determined whether the insurance company had changed its ownership stake since then.
Explaining the intervention by the State on Friday, Central Bank Governor Ewart Williams said that CLICO had a sizeable statutory fund deficit, and CL Financial had agree to divest "additional assets" to help fund this deficit.
“The government has committed to providing additional funding that is needed by CLICO,” said Williams. "Government funding will be provided in exchange for collateral and an equity interest in CLICO.”
This means that when the government takes control of CLICO, it will automatically inherit the insurance company's 23 per cent stake in OCM. The Government is also likely to inherit the directorship held by the CL Financial group on the OCM board.
OCM also owns ten radio stations in Trinidad and Tobago, Barbados, Grenada, St Lucia, St Kitts, Antigua and Montserrat. | | | | Reads : 3485 | | | |
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