Information on RJR/Gleaner Merger

The following is further information to help shareholders of Radio Jamaica Limited and the Gleaner Company Limited assess the financial benefits of the proposed amalgamation, especially in terms of the anticipated synergies* of which the companies have spoken. Management has presented their respective boards with plans to capture expected pre-tax synergies in the range of J$275 - J$450 Million within the first two to three years of transaction completion:

 

1. Cost synergies, at conservative levels, could be in the order of J$200 to 300 million per year.

2. Additional revenue synergies from joint initiatives could yield in the order of J$75M to $150M

3. Management`s aim would be to recover the one-off cost of unlocking identified synergies, through annual savings

generated therefrom.

4. Capital avoidance through eliminating duplication of spend is expected to drive further value.

5. Transaction and advisory costs are estimated: J$100-150 million. This includes advisor costs (for legal, valuation,

Fairness opinions, other advisory), stamp duty, etc.