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Halshane Burke reports
Scotiabank Canada has announced plans to acquire all outstanding shares of Scotia Group Jamaica (SGJL) that it does not already own, in a move that would see the company become a wholly owned private entity.
The proposal forms part of Scotiabank's strategy to improve capital and operational efficiency across its regional operations.
Scotia Group Jamaica says its board's independent directors unanimously recommended the transaction, leading to a definitive arrangement agreement with its majority shareholder, Scotiabank Caribbean Holding.
Under the proposal, all issued and outstanding Scotia Group Jamaica shares, not currently owned by Scotiabank Caribbean Holding, would be repurchased, subject to approval by minority shareholders.
The transaction will be carried out through a court-approved scheme of arrangement under Jamaica's Companies Act.
A meeting of minority shareholders is expected to be held in the coming months to consider and vote on the proposal.
If approved, the deal is expected to be completed in the fourth quarter of this year, subject to court approval and other customary conditions.
Following completion of the transaction, Scotia Group Jamaica's shares are expected to be delisted from the Jamaica Stock Exchange.
Scotiabank says the total cash consideration being offered to minority shareholders is approximately CA$500 million.
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