Financial analysts say the majority of the Scotia Group Jamaica Limited's minority shareholders will accept its offer to buy back the shares they hold for the revised price of $75 per share at tomorrow's meeting, which will be held at the AC Marriot Hotel.
This is 23 per cent higher than the original offer price of $61.50
Senior financial analyst Jason Craig Watson, speaking Tuesday on Radio Jamaica’s Real Business, stressed that $75 per share is a reasonable price and the minority shareholders know they are not going to get a better offer so they are going to vote to approve the current offer.
Watson also pointed out that the current market price of the stock is $71 per share, so if investors sold it to the market now they would be getting less than the offer price.
He therefore predicted that, given this reality, investors are going to accept the offer being made by the Scotia Group Jamaica Limited.
Christopher Thomas, senior investment adviser at Mayberry Investments Limited, agreed that the investors have no other option at this time. He also noted that the price being paid by Scotia Group Jamaica to buy back the stock is higher than the market price.
Audrey Tugwell Henry, President and CEO of Scotia Group Jamaica Limited, says the decision to raise the price of the buy-back to the minority shareholders was based on a better offer from its majority shareholder, Scotia Caribbean Holdings Limited, and its recent sterling financial performance for the year to date.
All feeds
