JMMB Group is pumping US$200 million into the company that is buying Sagicor Financial Corporation, a deal that will see the Jamaican financial conglomerate ending up with indirect ownership in the largest insurance conglomerate in its home market.
Sagicor Financial is the parent company for Sagicor Group Jamaica, the iconic insurance company that was once known as Life of Jamaica.
The announcement regarding JMMB’s deal with Alignvest comes two weeks ahead of a vote set for Barbados on June 4 for Sagicor Financial shareholders to vote their approval of a restructuring plan that will set the stage for its acquisition by Alignvest.
JMMB Group is taking a stake in Toronto-listed Alignvest Acquisition ll Corporation, the vehicle to be used for the acquisition of Sagicor Financial in a deal worth US$536 million – a price that Alignvest had previously described as a substantial discount on the company’s value. At the quarter ending March, Sagicor Financial’s shareholder equity topped US$640 million.
Under the deal, which is subject to regulatory approval, JMMB is expected to end up with “no less than 20 per cent” of the new Sagicor, a Barbados-based insurance conglomerate.
Alignvest also announced financing deals last week with two New York-based investors – KGT Investments, known as Highgate; and HG Vora Investments – which will broaden the extra-regional ownership of ‘New Sagicor’ even further.
JMMB Group, which has businesses in Jamaica, Trinidad & Tobago and Dominican Republic, sees the investment in Alignvest as a way to broaden its market reach in the Caribbean asset management and insurance markets. It already has a presence in the general insurance market in Jamaica but as a brokerage.
Sagicor Financial operates in the Caribbean as well as the United States, with Jamaica being one of its top markets. Its Jamaican operation, Sagicor Group, is led by Christopher Zacca as CEO and Richard Byles as chairman.
JMMB Group’s Alignvest investment translates to $27.2 billion investment in local currency.