Jamaica-based integrated financial services provider Jamaica Money Market Brokers (JMMB) Group Limited is set to own at least 20 per cent of New Sagicor – the new company to be formed following the takeover of Sagicor Financial Corporation (SFC) by Alignvest Acquisition II Corporation.
The announcement, which came today from Sagicor, said the deal would result in JMMB investing at least US$200 million.
Late last year SFC announced that Alignvest Acquisition II Corporation would acquire its shares valued at about US$536 million.
Following the completion of that deal between SFC and Alignvest, they will then merge into a new single entity – New Sagicor.
It is in this new entity that JMMB will have no less than 20 per cent stake.
In the a release this afternoon, Sagicor said the proceeds received by Alignvest from the JMMB deal are intended to be used in connection with the previously announced proposed transaction involving Alignvest and Sagicor.
Alignvest has also entered into similar subscription agreements with other firms in order to satisfy the minimum cash required to complete is proposed transaction with SFC.
“The closing of the new subscription is conditional on the completion of the transaction and the approval of the Toronto Stock Exchange,” the company said in its release.
Upon completion of the transaction and subject to the maintenance of minimum share ownership in New Sagicor, JMMB will have the right to nominate up to two eligible and qualified directors to serve on the board of directors of New Sagicor.
This will take the size of the board to 14 directors.
The statement said, 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 JMMB continues to own at least 20 per cent of the common shares in New Sagicor.
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”.
JMMB’s Group Chief Executive Officer Keith Duncan welcomed the transaction, saying, “We are excited about the prospects of what this 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.
Sagicor re-affirmed that the scheme meeting of Sagicor shareholders will be held on June 4, at 3 p.m.
Meanwhile, Alignvest has re-affirmed Thursday, May 16 at 5 p.m. as the deadline for holders of Class A Restricted voting shares to elect to redeem their Class A Restricted voting shares, and the morning of May 23 as the date for the special meetings of its shareholders and the extraordinary meeting of its warrant holders, the release said.