Sagicor to establish new group structure
Sagicor Life, Sagicor Investments (formerly Pan Caribbean Financial Services), and Sagicor Bank are to be merged into a super-powerful entity which will become the new Sagicor Group. In a lengthy release to the Stock exchange they state:
At a meeting of the Board of Directors of Sagicor Life Jamaica Limited (SLJ) held on July 25, 2013, the decision was taken to reorganize the corporate structure of the SLJ Group. The reorganisation will involve the establishment of a new holding company which will be listed on the main market of the Jamaica Stock Exchange and which will become the direct holding company of SLJ,( the Group’s insurance division), Sagicor Investments Jamaica Limited (S) (the Group’s investment banking division) and Sagicor Bank Jamaica Limited (the Group’s commercial banking division). All current shareholders of SLJ will exchange shares in SLJ for shares of equal value in the new Holding Company. That means the value of the new shares to be issued in Sagicor Group will be identical in value to the shares previously held in SLJ. The reorganisation will align the group`s organisational structure with the requirements of the new omnibus legislation for deposit taking institutions which is soon to be promulgated by Parliament. The day-to-day operations of SLJ, S and Sagicor Bank Jamaica Limited will not be affected by the reorganisation.
The Jamaica Gleaner on Sunday August 4, 2013 reported
Sagicor Jamaica has got court approval to restructure its operations under which all companies within the group will become subsidiaries of a new holding company.
Under the new scheme the new Sagicor Jamaica Group will become the parent of insurance company Sagicor Life Jamaica Limited, securities dealer Sagicor Investments Jamaica Limited, and commercial bank Sagicor Bank Jamaica Limited.
Sagicor Jamaica is the latest financial conglomerate to undergo reorganisation in line with new laws being devised by the Bank of Jamaica.
Further Approvals Pending. NCB Also to Implement
The Gleaner report continued, “Sagicor Jamaica said it would seek the approval of shareholders at a special meeting on a date that is still to be determined.
The reorganisation also requires approval of the Financial Services Commission and the Bank of Jamaica. The insurance company said it expects to complete the process by September.
The reorganisation by Sagicor Jamaica comes six years after Scotiabank Jamaica executed a court-sanctioned scheme in 2007 in which the shares in Bank of Nova Scotia Jamaica were transferred to newly created parent company, Scotia Group Jamaica. Scotia Group’s businesses include commercial bank BNS, a life insurance operation, a building society, and a securities dealership.
Earlier this year, National Commercial Bank Jamaica similarly announced it would be creating a holding company in which the bank would become a subsidiary. NCB said its reorganisation would happen before the end of its current financial year, which closes September 30.”