JMMB snaps up CAPITAL & CREDIT FINANCIAL GROUP
With 93.14 per cent of Capital and Credit Financial Group (CCFG) shareholders in Jamaica and Trinidad and Tobago accepting financial institution JMMB's offer and all requirements met, JMMB has received final approval in its bid to acquire CCFG.
Last August, JMMB made an offer to acquire the issued share capital of CCFG at a price of J$4.55 per share, of which 70 per cent is to be paid in cash, which amounts to a total payout of J$2.95 billion.
The remaining 30 per cent is in a share swap, paid for in the form of new JMMB shares being issued to CCFG shareholders.
Having surpassed the minimum 90 per cent shareholder take-up, JMMB has issued the mandatory notice to take over all remaining shares. However, the company is also affording all shareholders, who were unable to exercise their right to take up the offer during the stipulated period, the opportunity to voluntarily do so. As such, as of last Wednesday, the remaining shareholders had the opportunity to come into any JMMB and CCSL branches in Jamaica or direct to KPMG in Trinidad to accept the Offer. This is not an extension of the offer but simply a regulatory provision that JMMB is utilising to enable the many persons who came in after June 15 (close date of Offer) to voluntarily activate their right of acceptance.
JMMB's strategic acquisition of CCFG will result in an even more formidable financial services group that will offer wider choices in investment and banking products and services through an increased branch network to a combined client base of over 187,000 clients in Jamaica. The combined group will have total assets of J$152.1 billion. With this milestone, the JMMB Group is set to play an even more positive role in the development of the financial markets in Jamaica and the wider Caribbean, JMMB said in a statement.
Speaking to these possibilities, Group CEO, Keith Duncan noted, "JMMB and CCFG shareholders will enjoy tremendous benefits as a result of this transaction, bringing together the best of two indigenous companies – JMMB and CCFG – and this expanded entity will be positioned to deliver stronger financial performance, increase efficiencies by extracting synergies in products, technology platforms and operations, thereby increasing the overall growth prospects and shareholder value."
Duncan also lauded the collaborative spirit and approach between JMMB and CCFG team members during this planning process. "The camaraderie and commitment that was demonstrated by team members of both entities as they worked towards achieving this milestone has been truly inspiring. I am confident that this collaborative approach has created the possibility for identifying and practically combining of the best of JMMB and CCFG to the benefit of all our clients and the wider local and regional market."