BCB buys 7.5% of KeyTech
Bermuda Commercial Bank has taken a major stake in KeyTech Ltd., owner of BTC and Logic, citing the attractive dividend paid by the company.
In a filing to the Bermuda Stock Exchange, KeyTech Ltd announced that, as a result of a February 6 share transaction, BCB now owns 1,087,016 shares or 7.46 percent of KeyTech’s common shares.
At the current trading price of KeyTech shares, BCB paid around $6 million for the stake.
BCB also holds a major stake in another Bermuda company, West Hamilton Holdings Ltd.
At September 30, 2011, the Bank had a 40.83 percent interest in West Hamilton, which owns the Belvedere Building, Belvedere Place and a multistorey parking facility on Pitts Bay Road.
“We increased our holding of KeyTech because our advisers see it having an attractive yield,” BCB director and COO Horst Finkbeiner told
The Royal Gazette.
KeyTech shares were $5.50 last night and its dividend yield was 9.23 percent.
That stock yield is the highest currently of a domestic company on the BSX, followed by BAS Ltd’s 6.45 percent; Devonshire Industries’ (Bermuda Paint) 6.06 percent; BF&M’s 5.25 percent; and, rounding out the top five dividends, Bermuda Press’s four percent.