KINGSTON, Jamaica – Jamaica Producers Group Limited (JP) and PanJam Investment Limited (PanJam) Monday announced an agreement resulting in an amalgamation of both businesses to create a new group of companies.
In a statement, the companies said the new group will have substantial holdings in real estate and infrastructure, specialty food and drink manufacturing, agri-business, financial services and a global services network of interests in hotels and attractions, business process outsourcing, shipping, logistics and port operations.
The arrangement, which is subject to the approval of the shareholders of both companies and the relevant regulators, will result in PanJam acquiring JP’s operating assets in exchange for JP taking a 34.5 percent interest in PanJam.
PanJam, which will ultimately hold the combined businesses that will be renamed Pan Jamaica Group Limited (the Group).
“This transaction is not our first opportunity to partner with PanJam. We achieved great commercial success for shareholders in our joint investment in Mavis Bank Coffee Company. We also experienced, first-hand, our compatibility around our shared commitment to integrity, seriousness of purpose, nation building and shareholder returns,” said JP’s chief executive officer, Jeffrey Hall
“JP and PanJam operate businesses that have been tested by time and always come out stronger. With a joint balance sheet of over $100 billion (One Jamaica dollar=US$0.008 cents) in assets, we will have the scale to be more formidable, more global and more resilient,” Hall added.
PanJam’s chief executive officer, Joanna Banks said the company has done exceptionally well by building great partnerships with like-minded entities.
“The proposed business combination represents the creation of the quintessential Jamaican conglomerate, a geographically and operationally diversified company focused on value creation for all stakeholders through investment in key sectors of the global economy.
“Our internal analysis points to a future that we are all excited about – one in which our combined enterprises become the regional investment vehicle and investor of choice,” Banks added.
The statement said the boards of JP and PanJam relied on fairness opinions from Ernst & Young Services Limited to determine that the proposed transaction would be fair to shareholders of both companies.
JP will emerge as the largest shareholder of the Group, with its shares being its principal operating asset. Both the renamed Pan Jamaica Group and JP will remain listed on the main market of the Jamaica Stock Exchange.
The transaction is expected to be completed within the first quarter of 2023.
Hall will hold the position of CEO and Executive Vice Chairman of the Board of Directors of the new company, while Banks will hold the position of President of Pan Jamaica Group.
