Jamaican Financial Services Provider Buying Stake in Company That’s Replacing Sagicor

KINGSTON, Jamaica, Thursday May
23, 2019
– Jamaica-based
integrated financial services provider Jamaica Money Market Brokers (JMMB)
Group Limited will own at least 20 per cent of the new entity that will be
formed when Sagicor Financial Corporation (SFC) is taken over by a
Canadian-based special purpose acquisition corporation.

A
statement from JMMB said it is investing a minimum of US$200 million to have a
stake in Alignvest Acquisition II Corporation which is set to acquire all SFC’s
shares.

Upon completion
of Alignvest’s acquisition of SFC, the two will collapse into a new single
entity, New Sagicor.

“JMMB’s
acquisition of a minority stake in New Sagicor is a major investment, and will
give JMMB a unique opportunity to participate in the future growth of a market
leader in the Caribbean insurance and asset management sectors,” the Jamaican
company, a leading broker-dealer with operations in Trinidad and Tobago and the
Dominican Republic, said.

New
Sagicor will become an associated company of JMMB Group and, as part of the
agreement; JMMB will have the right to nominate two eligible and qualified
directors to serve on the board of directors of New Sagicor. Those nominees are
initially expected to be Keith Duncan, the Group CEO of JMMB, and Archibald
Campbell, the chairman of the board of directors of JMMB Group.

Additionally,
subject to certain exclusions, JMMB will receive participation rights in future
offerings of common shares for New Sagicor, or securities convertible or
exchangeable for common shares of New Sagicor, for up to five years following
the closing of the transaction, once it continues to own at least 20 per cent
of the common shares in New Sagicor.

Duncan
said JMMB was excited about the prospects of what its stake in Alignvest will
present for JMMB.

“As a
pioneering financial institution, we are always seeking out opportunities that
will add value to our stakeholders. In that vein, we are confident that having
such a stake in a regional market leader, will auger well for the future growth
and financial performance of the JMMB Group,” he said.

President
and Chief Executive Officer of SFC Dodridge Miller said JMMB’s planned
investment was “a significant vote of confidence in the strategic direction of
Sagicor, and a strong conviction of our ability to continue to grow the company
while delivering attractive returns to shareholders”.

The closing of JMMB’s subscription is conditional on the completion of the transaction and the approval of the Toronto Stock Exchange on which Alignvest is listed.

Click here to receive news via email from Caribbean360. (View sample)

Source link

قالب وردپرس