Scotiabank moves to take Jamaica unit private in $61.50 per share buyout

Scotiabank Caribbean Holdings Limited is initiating a move to take Scotia Group Jamaica Limited (SGJL) private through a buyout of minority shareholders. The offer price is set at $61.50 per share in cash. This proposed transaction, announced Friday, comes from SGJL's majority shareholder, which already holds 71.78% of the company.

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With a legacy of nearly 137 years in Jamaica, this transaction reflects our ongoing commitment to our operations in the country.

Under the agreement, all SGJL shares not currently owned by Scotiabank Caribbean Holdings would be repurchased. This move is contingent upon court approval, minority shareholder consent, and other closing conditions. The offer price reflects a premium of approximately 13% compared to the 30-day volume-weighted average trading price of SGJL shares on the Jamaica Stock Exchange before the announcement.

SGJL stated that the transaction is designed to enhance capital and operational efficiency, enabling Scotiabank to capitalize on market opportunities more swiftly. The company anticipates no significant impact on its current operations if the deal is finalized. Francisco Aristeguieta, group head of international and global transaction banking at Scotiabank, emphasized the company's "ongoing commitment to our operations in the country" given its "legacy of nearly 137 years in Jamaica."

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Jamaica and the Caribbean remain central to Scotiabank’s global strategy.

Jabar Singh, Scotiabank's president for the Dominican Republic and the Caribbean, reiterated that Jamaica and the wider Caribbean region remain integral to Scotiabank's global strategy. SGJL President and CEO Audrey Tugwell Henry added that the transaction aims to sharpen the group's focus on long-term value creation and core business growth. An independent committee of SGJL directors recommended the deal, which was subsequently approved by the board, with conflicted directors abstaining from the vote. Ernst & Young Services Limited provided a valuation and fairness opinion as the independent financial adviser.

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The transaction is intended to allow the group to focus more sharply on long-term value creation and core business growth.