PAN Jamaica Group (Pan Jam) said it expects to divest “about 12” non-core assets by the end of 2028, with the first few transactions to be completed before the end of 2025, Vice-Chairman and CEO Jeffrey Hall has told the Jamaica Observer.

Hall was giving an update on plans first announced at the company’s annual general meeting in June, where he outlined the conglomerate’s strategy to cash in on approximately $6 billion of non-core holdings. These assets are chiefly comprised of “listed equities, participations in funds, [and] interests in non-core real estate”, with the proceeds to be redirected into its four core divisions: Property & Infrastructure, Specialty Foods, Global Services, and Financial Services.

When asked if any divestments would be completed before the end of 2025, Hall said, “I expect so, yes. We’re in discussions….The programme is active, and we’re expecting to achieve some of it by the end of the year.”

He, however, declined to identify the specific assets slated for sale, stating, “We have not listed them. We’re working with individual stakeholders to effect [the] transfers in a steady programme.”

Hall was quick to point out that this divestment strategy is not motivated by a need for cash, emphasising that Pan Jam boasts a “very strong balance sheet and strong liquidity”, with over $16 billion in cash and short-term investments. Instead, he said, the programme is a deliberate, strategic choice to reallocate capital from passive, non-core holdings into the four core business segments — areas over which the company exercises direct strategic control and where it believes the potential for compounding shareholder value is greatest.

“This is a measured programme, and we’re really communicating our strategic intent. This is not a precondition for any other activity by the group,” Hall continued.

This robust financial position was clearly demonstrated in the company’s recent half-year results. Pan Jam delivered a stellar financial performance for the first half of 2025, showcasing dramatic growth across all key metrics. Group revenue rose 11 per cent to $21.4 billion, driven by strong performances in its core divisions. This top-line growth translated into even more impressive profitability, with net profit surging 80 per cent to $4.6 billion. Most significantly for shareholders, net profit attributable to them more than doubled, increasing by 103 per cent to $3.7 billion.

In 2024, Pan Jamaica Group accelerated its strategic focus by divesting two non-core assets: a parcel of land in Norbrook, St Andrew, realising a one-off gain of $307 million; and its 50 per cent shareholding in Grupo Alaska. It has also divested equities in other entities, with plans to sell more as market conditions allow. This deliberate strategy is already yielding returns for shareholders. “We expect to generate a profit from the divesting of the non-core assets,” Hall pointed out, noting that while proceeds are to be reinvested into core segments, the profits from these sales will be distributed as dividends. This is evidenced by the company’s increased dividend payout, which has risen to 32.5 cents per share for the first half of the year, up from 22 cents for the same period last year.

The capital generated from this streamlining is being channelled into a portfolio that is already demonstrating exceptional organic growth. The rationale is clear: “if you look at the divisions, the Financial Services Division or the Property Division or the Logistics Division or Food Division, you will see that they are performing better year on year.”

This performance is powerfully borne out in the financials. The Financial Services Division, anchored by its 30.2 per cent stake in Sagicor Jamaica, was the standout performer, reporting a profit before finance costs and taxation of $2.62 billion—a staggering 121 per cent increase year-on-year. The Global Services Division (Logistics) saw profits surge 38 per cent to $2.50 billion, while the Specialty Foods Division achieved a 97 per cent jump in profits to $420 million.

The Property & Infrastructure Division itself, which recorded the Norbrook gain in the prior year, demonstrated that its strength runs deeper than one-off transactions. Hall said, “But if you remove that one-off, you’ll see that it’s better.” Indeed, normalised profits for the division grew by a robust 39 per cent, propelled by its premium assets, including The ROK Hotel, Scotia Centre, and the Pan Jam Building.

This consolidated performance underscores the Group’s strategic confidence. “Our businesses continue to trade positively and continue to see strong commercial opportunities, and we believe that they are strategically positioned to take advantage of the best prospects for the economies and markets in which we operate,” Hall said. With all core divisions firing in unison and generating strong returns, the strategy of divesting non-core assets to fuel these high-performing segments is proving highly effective. As a result, Hall’s outlook is unequivocal: “I expect this to be a good year for Pan Jamaica Group. In a sense, at the end of the day, it’s been a good year for Pan Jam Group so far.”