Sagicor deal on?

Danny Scott, CEO for
Cayman General Insurance.

Tuesday, May  3, 2005

The negotiations for Sagicor to take a 51 percent share in Cayman General Insurance (CGI) may not be going smoothly. According to sources close to Sagicor, the Board has not been able to make a decision to finalise the deal because it has not yet received information concerning due diligence that it has requested from Cayman National Corporation (CNC).

“I am not sure if the deal is off, but there has been no opportunity to make a decision on it,” said the source. “At our last meeting with Chairman Dodridge Miller, discussions were inconclusive, because information on a due diligence exercise that was requested was not yet received.”

Another source said Sagicor is dragging its feet because it is not sure whether the deal will be acceptable or not to a post-election government.
However, when contacted by Cayman Net News Chairman of Sagicor General, Dodridge Miller, said any comments regarding the inconclusive nature of the negotiations were false.

“We are very much in discussions with CGI and moving forward in our relationship between Sagicor and CGI,” said Mr Miller.

George Town People’s Progressive Movement, (PPM) MLA Alden McLaughlin said that Government’s deal with CGI was not good value.

“It is not in the best interest of the people of the Cayman Islands and it is certainly not the best commercial value for our money,” said Mr McLaughlin. “I am unaware of the contractual arrangements, but it is something the PPM will definitely be looking into following the elections in May.”

There is a Sagicor Board meeting scheduled next week to discuss the negotiations with CGI.

Controversy has surrounded the deal between Cayman General Insurance and Government since it was reported by Cayman Net News that the Leader of Government Business, Hon McKeeva Bush coerced the directors of Cayman National Corporation to publish a letter as a full page advertisement in the Cayman Compass specifically thanking Mr Bush’s leadership in negotiating the settlement.

However, a number of people connected to the CNC including Board members have reported under the condition of anonymity that they were required to sign the letter or there would have been no deal.

Although attempts were made to contact both CNC CEO, Stuart Dack, and CEO of CGI, Danny Scott, neither was available for comment.

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