2 months ago
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Widebase Limited, which is wholly owned by Mayberry Group Limited, has become the largest shareholder in microfinancing company Dolla Financial Services Limited.
It now owns 21 per cent of Dolla, up from 14 per cent, but the company has said it will be seeking the approval of the Bank of Jamaica, the regulator of microcredit companies, to hold more than a 20 per cent stake in Dolla.
The acquisition of the additional seven per cent stake, or 175 million shares, on May 27, was made from First Rock Private Equity, sources said.
In a letter seen by the Financial Gleaner, Widebase said it views Dolla as a strong investment opportunity with growth potential. It expressed interest in taking an even bigger stake in the microfinancing company if the valuation is favourable but clarified that it has no intention of acquiring majority control.
Prior to the sale, the holdings of the top five owners of Dolla were: Dequity Capital Management, 500 million shares or 20 per cent; First Rock Private Equity, 400 million shares or 16 per cent; Supreme Ventures Limited, 375 million shares or 15 per cent; Mayberry Jamaican Equities, 289 million shares or 11.6 per cent; and Widebase, 350 million shares or 14 per cent.
Taken together, Mayberry Group and affiliated companies now own 31 per cent of Dolla, up from 24 per cent.
Dolla Financial is currently chaired by Walter Scott, with Ryan Reid as vice-chairman. Scott is also a director of Mayberry whereas Reid is chairman of First Rock Group.
Widebase said it is seeking regulatory approval for holding more than 20 per cent equity in Dolla, given its connection to Mayberry Group.
Under the Micro Credit Act of 2021, which placed microfinancing/microcredit companies under the regulatory umbrella of the central bank, a company that, “whether by itself or jointly with another, has control or effective control of a licensee”, is considered a connected party.
Mayberry Group and Dolla both disclosed the seven per cent transaction on the stock market.
English (US) ·