Published:Monday 11:36 AM
Two of Jamaica’s largest conglomerates, Jamaica Producers Group Limited (JP) and PanJam Investment Limited (PanJam), will merge to create a group worth over $100 billion in assets.
In a joint statement today, the heads of each group stated that they reached an agreement that will see the amalgamation of their businesses to create a powerful new group of companies, “strategically-positioned to take advantage of opportunities” locally and globally.
JP was founded as a co-operative of banana growers over 90 years ago.
Over the decades, it emerged as a group that owns food and juice brands along with logistics and shipping services.
PanJam, formed some 60 years ago, builds and operates commercial real estate but also holds private equity investments.
This arrangement will result in PanJam acquiring JP’s operating assets in exchange for JP taking a 34.5 per cent interest in PanJam.
“Post-transaction, PanJam, which will ultimately hold the combined businesses, will be renamed Pan Jamaica Group Limited. JP will emerge as the largest shareholder of the group, with its shares in the group being its principal operating asset,” according to the statement.
Both the renamed Pan Jamaica Group and JP will remain listed on the Main Market of the Jamaica Stock Exchange.
The transaction is expected to be completed within the first quarter of 2023.
The boards of JP and PanJam relied on fairness opinions from Ernst & Young Services Limited to determine that the proposed transaction would be fair to shareholders of both companies.
The expanded Pan Jamaica Group will be led by JP’s current CEO, Jeffrey Hall, who will hold the position of CEO and Executive Vice Chairman of the Board of Directors.
PanJam’s current CEO, Joanna Banks will hold the position of President of Pan Jamaica Group.
Stephen Facey will serve as Chairman of the Group’s Board, which will include directors from both JP and PanJam.
Charles Johnston, JP’s Chairman, Jeffrey Hall and Alan Buckland, JP’s current Chief Financial Officer, are expected to join the Group’s Board.
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