THE way is now clear for Micro-Financing Solutions Limited to purchase SSL Venture Capital, which has been insolvent for the past year and has been struggling to maintain profitability.

The board of SSL Venture Capital approved the sale at its meeting on Friday, paving the way for Micro-Financing Solutions to take control having first made a takeover bid offer to purchase 100 per cent of SSL Venture Capital on January 17 for $0.0948 per share. The total consideration at that price was $37.9 million. On that day, SSL Venture Capital closed at $0.87 cents each which would have given the company a market capitalisation of $348 million. However, at the close of trading on Tuesday the company's shares were valued at $806 million.

Investment and brokerage firm Stocks and Securities Limited (SSL) is the primary shareholder in SSL Venture Capital, owning 79 per cent of the issued shares with 15 per cent being owned by mostly former executive employees and directors and the balance of six per cent equity being owned by the general public.

The Jamaica Observer understands that Micro-Financing Solutions doesn't intend to delist SSL Venture Capital from the Jamaica Stock Exchange (JSE) and as such will not move to acquire all 100 per cent share equity at this time.

When contacted Micro-Financing Solutions Chairman Dino Hinds declined to comment on any plans being discussed and developed for SSL Venture Capital, urging the Business Observer to await the takeover circular, which will “spell out all those details.” He declared that it is too early to be commenting on such matters saying, “it would be imprudent to do so at this time.”

SSL Venture Capital was formed in 2018, following a rescue plan approved by the JSE of the failed music publishing company, C2W. As at June 30, 2021, SSL Venture Capital had accumulated deficit of $123.4 million.

BY DURRANT PATE Observer business writer pated@jamaicaobserver.com

Now you can read the Jamaica Observer ePaper anytime, anywhere. The Jamaica Observer ePaper is available to you at home or at work, and is the same edition as the printed copy available at https://bit.ly/epaper-login

HOUSE RULES

  1. We welcome reader comments on the top stories of the day. Some comments may be republished on the website or in the newspaper; email addresses will not be published.
  2. Please understand that comments are moderated and it is not always possible to publish all that have been submitted. We will, however, try to publish comments that are representative of all received.
  3. We ask that comments are civil and free of libellous or hateful material. Also please stick to the topic under discussion.
  4. Please do not write in block capitals since this makes your comment hard to read.
  5. Please don't use the comments to advertise. However, our advertising department can be more than accommodating if emailed: advertising@jamaicaobserver.com.
  6. If readers wish to report offensive comments, suggest a correction or share a story then please email: community@jamaicaobserver.com.
  7. Lastly, read our Terms and Conditions and Privacy Policy
Polls

Which long-term investment option is more attractive to you at the moment?