Sunday 5 July, 2020

GraceKennedy makes offer to acquire Key Insurance

GraceKennedy  Group CEO, Don Wehby disclosed that mergers and acquisitions will be a key strategic driver for growth for the GraceKennedy Group this year.

GraceKennedy Group CEO, Don Wehby disclosed that mergers and acquisitions will be a key strategic driver for growth for the GraceKennedy Group this year.

GraceKennedy Group, through its holding company, GraceKennedy Financial Group Limited (GKFG), has made an offer to acquire general insurance entity, Key Insurance Company Limited.

The offer follows the acquisition, in December 2019, of 15 per cent of Key Insurance’s shares. 

In pursuing ownership of the entity, GraceKennedy intends to limit its share acquisition to not more than 80 per cent so that Key Insurance will remain listed on the Junior Market of the Jamaica Stock Exchange.

The offer will be open for acceptance by Key Insurance’s shareholders at 9 am on January 27, 2020, and end at 4.30 pm on February 17, 2020.

Speaking to the acquisition, Group CEO, Don Wehby disclosed that mergers and acquisitions will be a key strategic driver for growth for the GraceKennedy Group this year.

“We will be focusing on growing our core business in the areas of food and financial services, both in Jamaica as well as the English-speaking Caribbean. M&A opportunities are therefore being looked at very carefully,” he said.

Wehby added: “We did our due diligence and having looked at the performance of Key Insurance to date, we see potential for the company to grow.”

He said the aim is to properly capitalize Key Insurance and maximize shareholder value.

“Naturally there will be a synergistic value from Key joining the GK family, as we have complementary businesses within the GraceKennedy Financial Group,” he added.

Listed on the Junior Market of the Jamaica Stock Exchange, Key Insurance was incorporated in 1982 and has grown its customer base, with offices located in Kingston, Portmore, May Pen, Ocho Rios, Montego Bay and Mandeville.

Key Insurance will be the newest member of the GK Financial Group, which comprises Western Union, Bill Express, FX Trader, GK General Insurance, Allied Insurance Brokers and First Global Bank.

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