JMMB gets final approval to acquire CCFG
JAMAICA Money Market Brokers (JMMB) completed its acquisition of Capital & Credit Financial Group (CCFG) on Friday.
Minister of Finance and Planning Dr Peter Phillips gave final approval for the deal, with 93.14 per cent of CCFG shareholders in Jamaica and Trinidad & Tobago accepting JMMB's offer and all requirements met, said JMMB in a press release.
JMMB made an offer to acquire the issued share capital of CCFG at a price of $4.55 per share, of which 70 per cent is to be paid in cash, which amounts to a total payout of $2.95 billion. The remaining 30 per cent is in a Share Swap, paid for in the form of new JMMB shares being issued to CCFG shareholders.
The cash portion of the payment was to be made on Friday either by 'direct deposit' or 'cheque' for shareholders in Jamaica, based on their selection, or by 'cheque' for shareholders in Trinidad & Tobago, stated JMMB.
The company noted, regarding the Share Swap portion, the process to have the new JMMB shares listed has commenced and the shares will be deposited to accepting shareholder accounts and be available for trading shortly.
Having surpassed the minimum 90 per cent shareholder take-up, JMMB has issued the mandatory notice to take over all remaining shares. However, the company said it is also affording all shareholders, who were unable to exercise their right to take up the offer during the stipulated period, the opportunity to voluntarily do so.
As such, as of Wednesday, July 4, the remaining shareholders will have the opportunity to go into any JMMB and CCFG branches in Jamaica or directly to KPMG in Trinidad to accept the offer.
"This is not an extension of the offer but simply a regulatory provision that JMMB is utilising to enable the many persons who came in after June 15 (close date of offer) to voluntarily activate their right of acceptance," the company said.
In anticipation of approval by the regulators and in keeping with the intention to proceed with a smooth integration process, JMMB said that the leadership teams of both firms had established joint work teams to plan and prepare for the integration of the entities. The intention in appointing these work teams was to create a comprehensive plan for the expanded entity to maximise the synergies and benefits for all stakeholders (team members, clients and shareholders) in shortest possible time and with minimal disruption to service delivery and operations, the company said.
JMMB added that, while the acquisition was completed on Friday, there will be no immediate change in "where or how" existing clients conduct business with JMMB and CCFG. Clients will receive personalised communication packages in the mail starting July 6, 2012 regarding recommendations for their accounts, the company said.