Mayberry Signs “Lockup Agreement” With Scotia Group For Scotia Investments At J$38.00
Mayberry’s Senior VP of Investment Banking, Tania Waldron-Gooden, signs “Lockup Agreement” with Scotia Group Jamaica Limited. The agreement was signed pledging support of Scotia Group’s recently announced Scheme of Arrangement to take Scotia Investments private at a price of J$38 per share. Looking on is CEO of Scotia Investments, Lissant Mitchell.
Mayberry Investments Limited (Mayberry) has announced that it has agreed to sign a Lockup Agreement with Scotia Group Jamaica Limited (Scotiabank Group) in support of Scotiabank Group’s recently announced Scheme of Arrangement to take Scotia Investments Jamaica Limited (Scotia Investments) private. Under the Lockup Agreement, Mayberry has agreed to vote all its shares in support of the proposed Scheme of Arrangement.
The Scheme of Arrangement, if approved, would result in Scotiabank Group paying J$38 per share to the minority shareholders and Scotiabank Group acquiring 100 per cent of Scotia Investments. Shareholders of Scotia Investments in Jamaica will be offered the option to receive the proposed compensation of J$38 per share in either Jamaican or US dollars, converted at the Bank of Jamaica weighted average selling rate of US dollars as determined 3 business days prior to settlement. Shareholders in Trinidad & Tobago will be paid in US dollars only.
Independent firm, Ernst & Young Services Limited, was contracted to undertake a fair value determination on the share price offer, and subsequently reported that the J$38 per share falls within the fair value range for the shares of Scotia Investments in transactions between willing buyers and sellers acting in their own self-interest.
CEO of Mayberry, Gary Peart, speaking on the agreement with Scotia Group said, “We’re happy that Scotia Group has put a fair and reasonable offer on the table. We are satisfied with the offer price at J$38 per share and through our own due diligence, we would consider it acceptable. The reality is that this was a good investment for us, but we welcome the cash returns from this transaction, which we will use to finance other investment opportunities, including the purchase of shares in Scotia Group”.
As of April 30, 2017, Mayberry was the second largest minority shareholder in Scotia Investments, owning approximately 9.5 million share units, including its managed client account. This represents 2.24 per cent of the minority shareholdings.