Sagicor Financial now an associated company of JMMB Group
Sagicor Financial is now an associated company of JMMB Group following the latter's acquisition of a 22 per cent stake in the insurance conglomerate.
JMMB acquired 33,213,764 common shares of Sagicor Financial in a transaction valued at US$250 million, putting Sagicor Financials' current value at approximately US$1.14 billion.
JMMB Group is a financial services group of companies which operates in the Caribbean. Sagicor Financial Company Ltd is also a financial services provider in the Caribbean, and has a growing presence as a provider of life insurance products in the United States, with over US$1.4 billion in total annual premiums, a company release indicated on Thursday.
Sagicor Financial Company Ltd and Sagicor Jamaica are separate entities. However, Sagicor Financial Company controls Sagicor Jamaica and owns 49 per cent of its ordinary shareholdings.
As part of the agreement, JMMB will have the right to nominate two eligible and qualified directors to serve on the board of directors of Sagicor Financial. Those nominees are Keith Duncan, the CEO of JMMB Group, and Archibald Campbell, the chairman of the board of directors of JMMB Group.
The transaction by JMMB Group involved the conversion of 33,213,764 Class B shares of Alignvest Acquisition II Corporation, on a one-for-one basis.
JMMB purchased the Class B shares from Alignvest by way of a private placement at US$10 per Class B share, totaling CAD$332,137,637.83 (based on a subscription amount of US$250,000,000.00 converted on the date of closing).
JMMB outlined that Sagicor, as the resulting issuer, thereafter issued the common shares upon conversion, in connection with Alignvest’s qualifying transaction with Sagicor Financial Corporation Limited.
This was done through a statutory plan of arrangement and the continuance of Alignvest to Bermuda, under the name “Sagicor Financial Company Ltd,” JMMB said.
Before the transaction, JMMB Group did not beneficially own or control any securities of Alignvest or Sagicor.
The group said by way of its release on Thursday that the acquisition of the minority stake in Sagicor “is a major investment for JMMB Group, and will give JMMB Group a unique opportunity to participate in the future growth of a market leader in the Caribbean insurance and asset management sectors.”
Commenting on the development, Duncan said: “My team and I are very happy about this milestone, as it marks a new phase in our journey as an organisation, having acquired a stake in Sagicor for investment purposes.
“In our ongoing thrust to identify opportunities that build on our solid performance and taking us to higher levels, all in the best interest of our clients, team members and shareholders; we remain confident that, having such a stake in a regional market leader, will augur well for the future growth and financial performance of the JMMB Group.”