PanJam Investment Ltd has acquired a 6.1 per cent stake in JMMB Group Limited (JMMBGL), making it the fourth-largest owner of the financial institution.

The acquisition of 100,000,000 shares in the company took place on Wednesday, September 26 when JMMB stocks closed at $26.53, valuing the purchase at $2.7 billion. JMMB stocks traded at $32.15 at the close of market on Thursday.

Vice-president of New Business Development and Strategy at PanJam Joanna Banks in statement to shareholders noted that PanJam’s investment in JMMBGL is in line with the company’s long-term strategy to take meaningful equity positions in strong, growing companies with a regional reach.

“We believe that innovative and efficient financial institutions are a key component of any economy. JMMBGL has carved a niche for itself in Jamaica’s robust and competitive financial sector. We expect that it will capitalise on opportunities as it transitions into the growth phase of its strategy,” she said.

The group’s purchase of JMMBGL shares was funded with proceeds from a private placement in secured notes with a 19-month maturity.

JMMBGL is made up of JMMB (Trinidad and Tobago) Ltd and subsidiaries, JMMB Ltd and subsidiaries, JMMB Money Transfer Ltd and commercial bank newcomer, JMMB Bank (Jamaica) Ltd.

The business covers investments, banking, remittance and insurance services, similar in nature to that of the Sagicor Group which continues to drive net profit for PanJam from its individual lines and investment banking segments. PanJam currently has a 32 per cent investment in Sagicor.

JMMB Bank seeks to capitalise on expected growth opportunities in Jamaica’s transportation, storage and communication sectors.

The financial institution plans on establishing itself as a strong player in the local commercial banking space by 2020, and will roll out a full suite of products, consistent with traditional commercial banking operations, as well as unique solution sets in response to client demand.

JMMBGL also passed a resolution to delist all its issued and outstanding shares from the Barbados Stock Exchange (BSE), citing that the low levels of trading of its shares do not justify the costs and complex regulatory requirements associated with maintaining the listing.

PanJam’s stake in JMMBGL further diversifies the group’s investment portfolio, which is dominated by real estate activities, including rental, management and development of commercial properties, and captive insurance. Its associated companies — Sagicor Group Jamaica Ltd, New Castle Company Ltd and Chukka Caribbean Adventures Ltd — continue to deliver strong results for company.

Investing in Jamaica for over 50 years, PanJam Group is among the largest publicly listed companies in the Caribbean. For the six months ended June 30, net profit attributable to PanJam shareholders totalled $1.8 billion compared to 2017’s $1.75 million while earnings per stock unit grew to $1.72.

PanJam’s issue of the 2025 Tranche B Global bond in May and September 2018 were used to refinance existing debt and fund ongoing investment activities. It was valued at $1.49 million.