JMMB Group CEO, Keith Duncan, says they will not be involved in the day to day operations of Sagicor Jamaica, after a deal to acquire20-percent of their parent company is complete.
JMMB is to own 20-percent of Sagicor Financial Corporation, following the completion of a deal involving Alignvest Acquisition.
They’re investing at least USD$200-million in Alignvest, which is, in turn, acquiring 100-percent of Sagicor Financial.
Alignvest is a special purpose acquisition corporation listed on the Toronto Stock Exchange.
While Sagicor Financial, headquartered in Barbados, is a leading financial services and insurance provider in several Caribbean countries, including Jamaica.
Once the deal is complete, Alignvest and Sagicor will become a new entity, being described for now as New Sagicor, even though the name is not expected to change.
JMMB Group CEO, Keith Duncan, says they will then own at least 20-percent of New Sagicor.
New Sagicor will then become an associated company of JMMB Group. As part of the agreement, JMMB will have the right to nominate two directors to serve on the board of New Sagicor. The initial nominees are expected to be Duncan and JMMB Group Chairman Archibald Campbell.
Duncan says the acquisition of a minority stake in New Sagicor is a major investment, which he expects will be very profitable for shareholders.
Duncan says JMMB will not be involved in the operations of Sagicor Jamaica. They will remain two separate entities, and the management will remain the same under New Sagicor. But he says the deal opens up opportunities in markets outside Jamaica.