JMMB Group Limited (JMMB Group) has acquired 22.5 per cent of the new Sagicor, Sagicor Financial Company Ltd (Sagicor).
In hailing the news of the share acquisition, JMMB Group CEO, Keith Duncan, said “My team and I are very happy about this milestone, as it marks a new phase in our journey as an organisation, having acquired a stake in Sagicor for investment purposes.”
He continued: “In our ongoing thrust to identify opportunities that build on our solid performance and taking us to higher levels, all in the best interest of our clients, team members and shareholders; we remain 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.”
JMMB Group announced that it acquired 33,213,764 common shares of Sagicor Financial Company Ltd. (Sagicor), on December 5, 2019, upon the immediate conversion of 33,213,764 Class B shares of Alignvest Acquisition II Corporation (Alignvest), on a one-for-one basis.
JMMB purchased the Class B shares from Alignvest, by way of a private placement, at US$10.00 per Class B share, totalling US$332,137,637.83 (based on a subscription amount of US$250,000,000.00 converted on the date of closing).
Sagicor, as the resulting issuer, thereafter issued the common shares upon conversion, in connection with Alignvest’s qualifying transaction with Sagicor Financial Corporation Limited, through a statutory plan of arrangement and the continuance of Alignvest to Bermuda, under the name “Sagicor Financial Company Ltd.”
Prior to this transaction, JMMB Group did not beneficially own or control any securities of Alignvest or Sagicor.
As a result of the transaction, JMMB Group now owns and controls 33,213,764 common shares of Sagicor.
In a statement, JMMG Group said: “This acquisition of a minority stake in Sagicor is a major investment for JMMB Group, and will give JMMB Group a unique opportunity to participate in the future growth of a market leader in the Caribbean insurance and asset management sectors.”
It continued: “Additionally, 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 Sagicor. Those nominees are Keith Duncan, the CEO of JMMB Group, and Archibald Campbell, the chairman of the board of directors of JMMB Group.”
Sagicor Financial Company Ltd. and Sagicor Jamaica are separate entities, however; Sagicor Financial Company Ltd. controls Sagicor Jamaica and owns 49% of its ordinary shareholdings.