Aug 2011 Financial News

JMMB to take over CCFG

Aug 11, 2011

Just days after NCB Jamaica snapped up 29 per cent of its issued shares, Jamaica Money Market Brokers Ltd (JMMB) announced yesterday that it had been in talks “in connection with JMMB’s interest in making an offer to acquire up to 100 per cent of the issued share capital of the Capital and Credit Financial Group (CCFG) at a price of J$4.55 per share.” In a joint statement issued last night, JMMB and CCFG said that it was JMMB’s intention that the offer would be payable partly in cash and partly by the issue of new ordinary shares by JMMB to CCFG. “This transaction would involve a change of control whereby JMMB would gain control of Capital & Credit Merchant Bank Limited (CCMB), a subsidiary of CCFG and a licensee under the Financial Institutions Act and would therefore be subject to the approval of the Bank of Jamaica (BOJ),” according to the statement.

The proposed takeover is subject to the approval and/or recommendation of regulatory bodies in Jamaica and T&T, where both JMMB and CCFG are listed. The merged entity would have 180,000 clients and US$2.1 billion in total assets under management. Keith Duncan, CEO of the JMMB Group sees great possibility in this potential acquisition saying, “CCFG and JMMB are two Jamaican companies who both share a passion for Jamaica and its growth, as well share a commitment to all Caribbean nationals realising their dreams and goals. If successfully concluded, this transaction would allow us to capitalise on the strengths of both entities to provide a wider array of services to our valued clients. Our conversations have been really open and have proceeded in a spirit of collaboration, while respecting the necessarily confidential nature of those conversations.” 

On Friday, NCB Jamaica shelled out over $160 million buying 428 million JMMB shares at $0.38 a share from a block of shares once owned by Clico Investment Bank (CIB). The CIB block had been held by Republic Bank as collateral for a loan granted to CIB.


Source:
Trinidad Guardian
Thursday August 11, 2011

http://www.guardian.co.tt/business/2011/08/11/jmmb-take-over-ccfg