Sagicor Jamaica shareholders back Caribbean merger; court sanction pending

Shareholders of Sagicor Group Jamaica Ltd approved a plan on Wednesday to combine the company with Sagicor Life Inc under a new regional parent, clearing the first hurdle in a reorganisation that would put Sagicor’s Caribbean businesses under one holding company.

The scheme of arrangement won the required votes by both number of holders and value of stock, according to a preliminary report from KPMG Regulatory & Compliance Services Ltd, the independent scrutineer. Shareholders also approved every resolution at an extraordinary general meeting held in Kingston and online. The company did not publish vote totals.

The deal is not done

Sagicor said the scheme “is not yet effective, and the proposed Caribbean reorganisation is not yet complete”. The Supreme Court of Judicature of Jamaica must still sanction the scheme, and the order must be registered with the Registrar of Companies. The wider reorganisation also needs regulatory approvals, the required financing and other closing conditions.

The plan has two stages. First, Sagicor Group Caribbean Ltd would become the listed parent of Sagicor Jamaica and replace it on the Jamaica Stock Exchange. Shareholders would receive one Sagicor Caribbean share for each Sagicor Jamaica stock unit. Sagicor Caribbean would then acquire Sagicor Life Inc and complete related transactions.

Sagicor said the combination “is intended to create a stronger, more diversified regional financial services group, with greater capacity to invest in growth, digital transformation, and client experience”.

“Today’s approvals bring us closer to realising our vision of ‘One Sagicor’ in the Caribbean, combining the strengths of our businesses to deliver greater value,” said Christopher Zacca, president and chief executive of Sagicor Jamaica.

Andre Mousseau, president and chief executive of Sagicor Financial Company Ltd, the parent, said the new structure “will allow us to coordinate investment, share capabilities, and pursue growth more effectively”.

Sagicor Financial owns 49 per cent of Sagicor Jamaica and all of Sagicor Life Inc. When Sagicor proposed the structure in December, it said Sagicor Financial would hold about 55 per cent of Sagicor Caribbean after closing, and that the combined group would have US$6.9 billion in total assets and US$1.3 billion in revenue for the 12 months to September 30, 2025.

Sagicor Jamaica is among the largest companies on the Jamaica Stock Exchange by market value.

business@gleanerjm.com