Wigton Energy Limited (WIG) has taken control of Flash Holdings Limited (FHL), raising its stake to 51 per cent in a move aimed at fast-tracking the roll-out of electric vehicles under the subsidiary Flash Motors Company Limited (FMCL).

The acquisition was finalised on June 19 through a share transfer agreement and comes with a one-year corporate guarantee from Wigton on a loan secured by Flash Motors from the Inter-American Investment Corporation, the lending arm of Inter-American Development Bank (IDB) Invest. With majority ownership, Wigton will now consolidate Flash Holdings into its financial statements going forward.

However, the energy company has indicated that the arrangement may be temporary. If Flash Motors hits specific growth milestones by March 2028, Wigton’s ownership could be scaled back.

“The increase in WIG’s shareholding in FHL to 51 per cent may not be permanent and, subject to certain performance targets of FMCL through to March 31, 2028, WIG’s shareholding could be reduced to 30 per cent,” the company said in a notice posted on the Jamaica Stock Exchange recently. Wigton has not disclosed the value of the loan guarantee, but has indicated that the decision was made in support of long-term shareholder value and in alignment with national clean energy goals.

Wigton first acquired a 21 per cent stake in Flash Holdings in 2022, marking its entry into the electric vehicle market. That investment remained relatively small, with the stake valued at $112 million — just over one per cent of Wigton’s total assets — at the end of the March 2025 financial year.

In its newly released audited results, Wigton disclosed that it had tested the investment for impairment, given that its share of Flash’s net assets was less than the carrying value on its books. The company brought external valuators to help assess the long-term value of the business, using projected earnings and market assumptions.

Those tests showed no impairment was necessary, but auditors PwC Jamaica highlighted that the outcome was highly sensitive to changes in assumptions, including how fast the EV business can grow and the cost of capital used to evaluate it.

Those same variables now underpin the new performance-linked structure of the deal. Should Flash Motors deliver on its targets, Wigton’s stake will fall back to 30 per cent, allowing it to retain influence while freeing up capital.

Flash Motors, headquartered in St Lucia, is aiming to carve out a market for electric vehicles in Jamaica and other parts of the Caribbean. The company’s efforts so far have focused on building out distribution and support infrastructure, with financing from multilateral institutions now helping to strengthen its balance sheet.

Wigton’s EV investment forms part of a broader diversification push at Wigton, which rebranded from Wigton Windfarm to Wigton Energy last year. Alongside Flash, the company has been pursuing solar and battery storage projects and now describes itself as a multi-solution renewable energy provider.

Wigton closed its financial year with a net profit of $302.9 million, down from $839 million the year before. The decline was due in part to higher administrative and interest costs, along with a smaller tax credit. However, the company maintained a strong cash position of just over $3 billion, leaving room to support its diversification strategy.

— Karena Bennett