Scotia Investments Jamaica Limited has received a formal proposal from its parent company, Scotia Group Jamaica Limited to initiate a Scheme of Arrangement to take Scotia Investments private by cancellation of the shares held by all the minority shareholders at a price of J$38.00 per share.
Under the proposal, shareholders whose shares are listed on the Jamaica Stock Exchange and shares cross-listed on the Trinidad & Tobago Stock Exchange will have the option to receive payments in United States dollars.
Mrs. Audrey Richards, chair of a Committee of Independent Directors, identified and engaged Ernst & Young Services Limited who reported that a value of J$38.00 per share was within the fair value range for the shares of the Company in an arm’s length transaction between a willing buyer and a willing seller.
The Scotia Group proposal is that the transaction be undertaken by way of a court-approved Scheme of Arrangement under the Companies Act, 2004
Scotia Investments which has historically traded the low share volumes up 40 cents on volumes of 12,970 units to close at $36.90 on the Jamaica Stock Exchange yesterday.
Scotia Investments is a leading securities dealer in Jamaica. Its shares are listed on the Jamaica Stock Exchange and cross-listed on the Trinidad & Tobago Stock Exchange. It began operations in 1992 as Dehring Bunting & Golding Limited (“DB&G”). That same year it converted to a public company, made an initial public offer and was listed on the Jamaica Stock Exchange. In 2006 The Bank of Nova Scotia (BNS Toronto”) and its Jamaica subsidiary, The Bank of Nova Scotia Jamaica Limited (“BNSJ”) made a joint take-over bid to acquire a controlling interest in DB&G. The bid was successful and culminated in the bidders obtaining 77.01% of DB&G. Subsequent to the bid, a Scheme of Arrangement was undertaken pursuant to which the shares
acquired by BNS Toronto and BNSJ were vested in Scotia Group.
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