PanJam acquires $2.7b stake in JMMB
Published:Thursday | September 27, 2018 | 12:00 AM
Property and investment conglomerate PanJam Investment Limited has shelled out $2.7 billion for a stake in JMMB Group Limited, whose financial businesses span three Caribbean countries.
PanJam now holds 6.1 per cent or 100 million units of the JMMB stock, making it the fourth-largest owner.
The transaction occurred on Wednesday in the form of a block trade. JMMB operates in Jamaica, Dominica Republic and Trinidad & Tobago with $29 billion in shareholder equity at year ending March 2018.
"PanJam's investment in JMMB is in line with our long-term strategy to take meaningful equity positions in strong, growing companies with a regional reach. We believe that innovative and efficient financial institutions are a key component of any economy," said PanJam Vice-President of New Business Development and Strategy, Joanna Banks, in a statement announcing the acquisition.
The other top owners of JMMB Group are: NCB Capital Markets, 26.3 per cent; Trustees JMMB ESOP, 9.19 per cent; and Colonial Life Insurance Co (Trinidad) Limited with 6.35 per cent.
The JMMB stock traded at $26.53 Wednesday and shot up to $32 on Thursday, valuing the company at more than $52 billion.
JMMB becomes PanJam's second major position in a listed company - it holds a one-third stake in insurance conglomerate Sagicor Group, from which most of its earnings flow. PanJam also holds smaller positions in a number of unquoted stocks.
The JMMB investment follows pronouncements by Banks at PanJam's annual general meeting in May that the group would create a trading division in order to benefit from the growth in the stock market.
The share purchase was funded with proceeds from a private placement of $2.7 billion in secured notes, which will mature in 19 months. PanJam also disclosed that it issued $1 billion of secured debt, taken in two equal tranches in May and September, to refinance existing debt and fund investment activities.
PanJam generates shareholder returns through real estate rentals and property management; development of commercial properties; and captive insurance. It also trades equities and fixed-income assets for its proprietary portfolio.