Fraud-hit SSL directors barred from winding-up company
Written by Super User
THE Financial Services Commission (FSC) on Wednesday obtained a court order blocking directors of Stocks and Securities Limited (SSL) from taking action to wind up the company that is at the centre of a multi-billion-dollar fraud.
BoJ Governor Richard Byles is new chair of Financial Services Commission
Written by Super User
Governor of the Bank of Jamaica (BOJ), Richard Byles, is the new Chairman of the Financial Services Commission (FSC).
KingAlarm to transition 3,000 contract workers to staff employees
Written by Super User
KINGSTON, Jamaica – Security company KingAlarm will transition its over 3,000 private contract officers to staff employees by April 1.
Stocks fell at twice the rate that they advanced on the Jamaica Stock Exchange (JSE) on Thursday.
Having played a pivotal role in positioning Jamaica to take advantage of opportunities in the booming digital economy, while setting new standards in service innovation and delivery, Digicel Jamaica CEO, Jabbor Kayumov, has decided to step down and will hand the reins to long-time Digicel leader, Stephen Murad.
Creative agency The LAB's profit dips 7 per cent
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Creative Agency the Limners and Bards Limited (The LAB) for the year ended October 31, 2022 saw its profit dip seven per cent to total $144 million.
Sagicor’s Alysia Moulton White slapped with multiple fraud charges
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Alysia Moulton White, the vice-president of group marketing for Sagicor Group Jamaica, has been slapped with multiple charges in relation to alleged fraudulent activities on customers' accounts at the institution.
Access Financial Services appoints acting CEO
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Access Financial Services has announced that Hugh Campbell will act in the capacity of CEO with responsibility for the day-to-day operations of the business.
$30.4 b in new estimates for 60,000 civil servants
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FINANCE Minister Dr Nigel Clarke has appealed to Parliament for more time to present details of the Government's new compensation scheme for the public sector, promising that the information will be provided once negotiations with central government groups are complete.
Scotiabank Jamaica cops Bank of the Year 2022 Award
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Scotia Group Jamaica has been named ahead of other local banking institutions as Bank of the Year 2022 by internationally recognised UK-based banking publication, The Banker.
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JSE and Dutch Caribbean Securities Exchange sign MOU
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The Jamaica Stock Exchange (JSE) and the Dutch Caribbean Securities Exchange (DCSX) have signed a Memorandum of Understanding toward building and leveraging synergies to grow the financial markets in both jurisdictions.
Both stock exchanges will be partnering in areas such as digitization, market education, cross-listing and accessing the European markets.
“What we are doing is ensuring that all the exchanges within the Caribbean are linked so that all parties can benefit from the synergies,” JSE Managing Director Dr Marlene Street Forrest said.
The exchanges will also be able to provide services that they may not have now, she said.
“For example, leveraging our e-campus,” she said.
“We thank the Dutch Caribbean Securities Exchange for making this journey, for it further cements our objective of strengthening the linkages in the Caribbean. We have Trinidad and Tobago; we have Barbados and Eastern Caribbean and now we have the Dutch Caribbean, and this is exciting,” Dr Street Forrest said in the JSE’s media release.
Partnering to develop the financial services industry across the region will further bolster the Caribbean’s ability to attract overseas investors, she reasoned.
“The more we can join with each other in terms of offering of services to the market, the better and more attractive the region becomes to external investors,” she said.
Listed companies may also soon have an avenue to tap European markets.
“What it [the partnership] would mean is that there is the possibility. We will be able to leverage the relationships of the DCSX to enter the European markets and vice versa,” she said of the win-win for market expansion that the MOU allows.
“The JSE is seeking to continue forging this partnership with DCSX as we pursue our 2025 vision to expand our borders for growth and sustainability,” Dr Street Forrest said.
“We are of the firm belief that as we pursue regional partnerships, we are in a better position to innovate, become more relevant to those outside of our immediate communities for foreign direct investments among other programme and seize global opportunities, which we would not have otherwise captured had we not forged a working relationship,” she added.
'Jamaica is the place,' PM says as he encourages others to invest
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Prime Minister Andrew Holness says a strong government and good governance have been the catalysts for improvement and recovery in the country's economy post-pandemic.
Speaking Tuesday at the Invest Jamaica Conference in Montego Bay, St James, Prime Minister Holness stressed that the speed of Jamaica's recovery can be attributed to making the right decisions for the overall good of the country, while balancing lives and livelihood.
“We managed the pandemic in such a way that we didn’t have to sacrifice businesses, we ensured that businesses could recover quickly. Now we are happy to say that our tourism product has recovered," said Holness.
He also noted that the recovery after the pandemic is phenomenal, especially after several months of complete shutdown of the industry.
Pointing to this as evidence of the robustness of the Jamaican economy, the prime minister said, now, more than ever, the country is equipped and poised for greater investment.
He, therefore, moved to encourage greater investment in the country, while highlighting Jamaica’s peak performance in tourism and the high employment rate.
“If you are looking for a place that is near your shores, on the same time zones, accessible, an hour and a half from any major destination that you may be originating from, and you want high-quality labour that can easily communicate, then Jamaica is the place,” said Holness.
He also underscored that the objective of the Government is to convert the country’s assets into prosperity.
The prime minister said: "Jamaica has one of the oldest democracies of modern time and it can become the country that has converted its democracy, its political stability and its economic sustainability into prosperity for the people."
Holness also gave the assurance that the Government and people of Jamaica are committed to the journey of advancement and prosperity of the nation and, therefore, welcome investments that will accomplish this mission.
GraceKennedy surpasses $100b revenue target set to mark anniversary
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The GraceKennedy Group has posted revenues of $107.4 billion, an increase of 12.2 per cent or $11.7 billion over the corresponding period in 2021, surpassing the $100 billion target the company previously set to mark its 100th anniversary.
Supreme Court approves RJR,1834, Scheme of Arrangement
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The commercial division of the Supreme Court of Jamaica has sanctioned the scheme of arrangement which will see 1834 Investments Limited amalgamated into Radio Jamaica Limited and 1834 shareholders receiving cash or shares in Radio Jamaica, which trades as RJR on the Jamaica Stock Exchange (JSE).
The case was heard last Thursday by Justice C Brown Beckford by video conference. This paves the way for 1834 to file the court order with the Registrar of Companies confirming the scheme of arrangement by the Supreme Court, making it effective.
Once effective, 1834 shareholders who opted for RJR shares should receive them in seven days while those who opted for cash will receive their payment in 14 days. If no option is elected, they will have been deemed to elect the cash consideration. Radio Jamaica is paying 0.4962 Radio Jamaica shares per 1834 Investments share, $1.29 in cash or a combination of cash and shares. 1834 shares have been suspended from trading on the JSE since October 25 at $1.21. The original share offer was 0.403125 new RJR shares per 1834 share before it was increased.
"While it is bittersweet to say goodbye to 1834 Investments as we knew it, we are thrilled about the unique opportunities this amalgamation will create for those who have chosen to participate in the new RJL and we are pleased that the transaction offered significant cash value to our shareholders who decided to choose that option," said 1834 director Monica Ladd in the release.
The timelines proposed in the circular was for the effective date to be December 1 with cash transferred by December 8 and RJR shares by December 15. The 1834 will be struck off the register of companies once the process is completed and delisted from the JSE.
Ladd is one of nine major shareholders in 1834 who signed a lock-up agreement, which will result in them receiving RJR shares as payment for their 1834 shares. The total interest from these nine shareholders was 52.37 per cent or 634,303,961 shares with Ladd mentioning that one or two had opted for cash at the court-ordered meeting on August 10. If all these parties' interests are converted to RJR shares, it would amount to 319,207,426 shares.
RJL entered into a "cash-back stop" agreement with Victoria Mutual Investments Limited (VMIL) to pay up to $700 million in equivalent value to 1834 shareholders who selected the cash payment option. This equates to around 347,340,000 shares in Radio Jamaica. This also meant that RJL is only exposed to paying four per cent in cash or $63 million for 1834 shareholders who opt for cash.
This would make Financial Advisory Services Limited and VMIL the largest shareholders in Radio Jamaica based on the most recent top ten shareholder report after the scheme is completed.
It's unknown as to what proportion of 1834 shareholders will select the cash payment with two 1834 shares equating to one new RJR share. However, RJR's stock price has considerably softened in the last two months as the market has experienced a significant decline in market prices. RJR traded at $1.85 on Thursday and hit a 52-week low of $1.70 on October 19. The stock is currently down 40 per cent year to date with market capitalisation standing at $4.45 billion.
The 1834's asset base ended September at $1.77 billion with shareholders' equity at $1.44 billion or $1.19 in book value. It incurred a net loss for the six months of $47.84 million compared to the net profit of $1.72 million in the 2021 period.
Radio Jamaica's consolidated revenue was down four per cent for the first six months to $2.74 billion with the group recording a net loss of $52.27 million relative to the $137.47 million net profit earned in the prior period. This was attributed to the softness in the overall advertising market as businesses are impacted by local and global economic challenges.
The consolidated asset base was down two per cent to $4.87 billion with non-current assets at $2.92 billion and current assets at $1.96 billion. Total liabilities and shareholders equity ended the period at $2.19 billion and $2.68 billion.
"By bringing together these two iconic companies through this transaction, we are creating a strong platform for the new RJL to address the challenges and opportunities of the digital media sphere. We have the utmost respect for 1834's business and greatly look forward to unlocking additional value for shareholders through the integration of the two companies," said RJL Managing Director Gary Allen in the press release.