1834 Investments, Radio Jamaica prop up shareholder value in proposed deal

Radio Jamaica Limited (RJL) and 1834 Investments Limited have agreed to amendments to the proposed consideration payable to each shareholder in 1834 Investments under the scheme implementation agreement first announced in April.

In a joint press release yesterday, the companies said that the change in consideration has been agreed in order to ensure that shareholders in both companies receive optimal value as they seek to amalgamate.

It was previously announced that each shareholder in 1834 Investments may elect to receive:

a) 0.403125 shares in RJL per 1834 Investments share; or

b) a cash payment of J$1.29 per 1834 Investments share; or

c) a combination of shares in RJL and cash.

This has been revised such that a shareholder in 1834 Investments may now elect to receive:

a) 0.4962 shares in RJL per 1834 Investments share; or

b) a cash payment of J$1.29 per 1834 Investments share; or

c) a combination of shares in RJL and cash.

“Ernst and Young Services Limited has confirmed that the revised consideration falls within a range which is fair from a financial point of view, and has issued a fairness opinion to this effect,” the companies noted in the release.

A fixed date claim form has been filed with the Supreme Court seeking an order to summon a meeting of shareholders in 1834 Investments to consider the proposed scheme of arrangement.

If approved by the court and shareholders, 1834 Investments would, in the process, be amalgamated into Radio Jamaica, which is the parent company of the RJRGLEANER Communications Group, and be dissolved.

Formerly The Gleaner Company Limited, 1834 Investments is a locally incorporated and domiciled holding company for a portfolio of domestic and international investment assets. The company’s main activity is the management of its income-generating real estate, bond and equity investments, and the management of its joint venture and subsidiary companies.

RJL’s primary activities, through its various subsidiaries, are the operation of an over-the-air television station, three cable television channels, four FM radio stations and the publication of news and information.