The raised offer to buy out Scotia Group Jamaica’s (SGJ) minority shareholders is acceptable, according to the insurance group Sagicor whose pooled equity funds tally to the second-largest holders of SGJ shares.
“Accept [the] scheme offer,” according to Sagicor’s Research & Strategy Unit equity review released on Thursday.
The price is “aligned with our estimate of the average intrinsic value” it added. The review however told shareholders to weigh the price against the transaction terms, completion risk and client’s own circumstances.
Sagicor used two valuation methods: a comparison of SGJ’s share price against its historical earnings and book value, and a forward-looking projection of dividends. Together, the review said, they “produced an estimated target price of $75.05”.
The rating could matter to the vote
SGJ’s parent, Scotiabank Caribbean Holdings Ltd., holds 72.76 per cent of the 3.1 billion shares in issue as at June 2026. Accounts Sagicor manages for clients hold about 4.2 per cent of all SGJ shares. The scheme requires approval by both a ‘majority in number’ of minority stockholders voting in person, or by proxy; and by votes representing at least 75 per cent in value.
When the deal was announced in June, the price was $61.50 a share. The new price of $75 is 22 per cent higher and about 27 per cent above SGJ’s $59 close on September 29.
The review does not say how Sagicor’s funds will vote.
Vote and timeline
Minority shareholders vote at a court-ordered meeting on October 7, with proxies due by 11 a.m. on October 5. The Supreme Court is due to hear the sanction application on October 30.
Sagicor’s holdings
Sagicor Pooled Equity Fund holds 1.97 per cent of SGJ’s shares, making it the second-largest account behind Scotiabank Caribbean Holdings. Two other Sagicor client accounts, SJIML A/C 3119 at 1.79 per cent and Sagicor Select Funds (Class B shares) at 0.40 per cent, bring the combined stake to about 4.16 per cent.
Financials
SGJ’s nine-month net profit rose 9.6 per cent to $16.18 billion. Total assets grew 13 per cent to $853.19 billion, and equity rose 18.8 per cent to $174.56 billion. The review says SGJ now has the largest mortgage book in the market and cites a 55 per cent trailing efficiency ratio. Based on the review’s figures, $75 works out to about 1.3 times book value and 11 times trailing earnings, compared with 1.05 times and 8.56 times at $59.
business@gleanerjm.com
