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Alignvest Acquisition is buying the financial conglomerate, Sagicor Financial Corporation (SFC). SFC is the large parent company of the Sagicor Group Jamaica; one of the largest insurance companies in the country. The restructuring has been ongoing for several weeks now and the final round of voting is set to happen shortly, to finalise the acquisition. The JMMB Group is investing in this venture in order to obtain indirect ownership of the Sagicor Financial Corporation. The shareholders will hold the final vote in Barbados on June 4. JMMB will have at least 20% of the voting rights in the new company, once the deal is finalized.
Net Worth of this Acquisition
JMMB, despite already having a global presence, will gain strength in the Insurance and Asset Management market through this transaction. JMMB Group is confident that this investment will lead to more profits, in the long run, justifying a large amount of money it has invested in this new venture.
It is said that The JMMB Group is putting up around $27 billion JMD as an investment in this deal. Though the company has net liquidity of $24 billion, this investment is indeed a considerable amount. The company has mentioned that the deal is being paid off by a combination of both cash and debt. Multiple sources have confirmed that the company does have enough liquidity and assets to set the balance sheet before the year end. JMMB Group CEO, Mr. Keith Duncan, disclosed in an interview that this acquisition would be an excellent opportunity to improve the growth and strengthen the presence of the company in the long term.
Other Partners in this Deal
Apart from JMMB, another two companies are also part of this deal. They are the KGT Investments and HG Vora Investments. KGT Investments, also known as Highgate, is a New York-based company. Both these companies are investing a sum total of $120 million in this deal. They will receive class B shares from Alignvest Acquisition who are believed to have put up a total of US$220 million for this acquisition. All three companies, combined, satisfy the liquidity criteria for the deal.