KINGSTON, Jamaica — The Development Bank of Jamaica (DBJ) is reporting that the Government’s shares in KIW International Limited has been sold to Jamaican Teas Limited for $57 million. 

KIW, formerly Kingston Industrial Works Ltd, was formed in 1908 to provide industrial repair services to the sugar estates. In August 1978, the Government acquired 6.8 million (42.6 per cent) of the issued ordinary share and all of the preference shares of the company. 

However, a share sale and purchase agreement completed on Friday will see Jamaican Teas acquire the Government’s interest. A sum of $10 million was paid on signing, with the remaining $47 million to be paid within 30 days of the agreement.

Managing Director of the DBJ, Milverton Reynolds, in a release from the bank, said he was very pleased to see yet another privatisation transaction come to a successful conclusion. 

“We, at the DBJ, are very pleased to see that the members of the private sector are seeing the enormous benefits and potential that are available when they invest in Government-owned entities that can add value to their holdings,” he added.

Chief Executive Officer of Jamaican Teas, John Mahfood, said he found the person involved in the deal very professional, and the process transparent.

KIW, which is registered under the Jamaican Companies Act, has over 2,000 shareholders. 

The DBJ release said its main income is generated from the rental of factory and warehouse space at its location at 138 Spanish Town Road, Kingston 11.