Jamaica Producers Group Limited (JP) and Panjam Investment Limited (Panjam) announced on Monday an agreement to merge their businesses to form a new group of companies.
In a statement, the companies said the new group will focus on real estate and infrastructure, specialty food and beverage manufacturing, agribusiness, financial services, and hotels and attractions, business process outsourcing, shipping, logistics and port operations.
The arrangement is subject to shareholder and regulatory approvals of both companies and will result in PanJam acquiring JP’s operating assets in return for JP acquiring a 34.5% equity interest in PanJam.
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PanJam will eventually hold the combined business and will be renamed Pan Jamaica Group Limited.
“This transaction is not our first opportunity to partner with PanJam. , said:
“JP and PanJam have been tested over time and run a stronger business all the time. With a joint balance sheet of over $100 billion (Jamaican dollar = US$0.008) in assets, we are stronger, more global and more competitive. , will have a more resilient scale,” Hall added.
PanJam CEO Joanna Banks said the company is doing very well by building great partnerships with like-minded organizations.
“The proposed business combination represents a quintessential Jamaican conglomerate of geographically and operationally diverse companies focused on creating value for all stakeholders through investments in key sectors of the global economy. represents the creation of
“Our internal analysis points to a future that we are all excited about: a future in which integrated companies become the investment vehicle and investor of choice in the region,” added Banks. .
The boards of JP and PanJam relied on an impartiality opinion from Ernst & Young Services Limited to determine that the proposed transaction was fair to the shareholders of both companies, according to a statement.
JP will emerge as the group’s largest shareholder and its shares will be the primary asset under management. The renamed Pan Jamaica Group and JP will continue to be listed on the main market of the Jamaica Stock Exchange.
The transaction is expected to close in the first quarter of 2023.
Mr. Hall will serve as CEO and Vice Chairman of the Board of Directors of the new company, and Mr. Banks will serve as President of Pan Jamaica Group.