Scotiabank Raises Privatisation Offer

  • Scotia Group Jamaica Limited (SGJL) announced on September 29, 2026, that the consideration under its proposed privatization Scheme has been increased from JMD$61.50 per stock unit to JMD$75.00 per stock unit, a 21.95% increase. The revised offer follows SGJL’s strong second- and third-quarter results and the receipt of an improved proposal from its majority shareholder, Scotiabank Caribbean Holdings Limited (SCHL), to increase the purchase price under the previously announced privatisation transaction. SCHL currently owns 71.78% of SGJL’s issued and outstanding shares.
  • The revised purchase price of J$75.00 per share represents a premium of approximately 38% to the thirty-day volume-weighted average trading price of SGJL shares on the Jamaica Stock Exchange (JSE) as at June 11, 2026, the last trading day prior to the original transaction announcement, and a 27% premium to SGJL’s closing price of J$59.00 on September 28, 2026.
  • The terms and conditions of the arrangement agreement otherwise remain unchanged. Some large institutional shareholders have also entered into voting support arrangements in favour of the transaction at the increased price, collectively representing 21.12% of the minority shareholding. The transaction will continue to be undertaken by way of a court-approved Scheme of Arrangement under the Companies Act, 2004. The Supreme Court of Jamaica’s Commercial Division granted SGJL permission on July 15, 2026, to convene the scheme meetings. The meeting of minority SGJL shareholders is scheduled for October 7, 2026, at 11:00 a.m. at the AC Marriott in Kingston.
  • If approved, the transaction is expected to close in the fourth calendar quarter of 2026, subject to court approval and other customary closing conditions. Shareholders will continue to have the option to receive payment in either Jamaican or United States dollars, based on the Bank of Jamaica’s (BOJ’s) weighted average selling rate three days before the settlement date.
  • According to Management, the increased offer follows strong operating performance by SGJL. The company reported net income of J$10.08Bn for the six months ended April 30, 2026, up 9.5% from J$9.21Bn a year earlier. This was supported by total revenues excluding expected credit losses increasing 11.1% to J$37.1Bn.
  • SGJL has demonstrated a strong long-term earnings trajectory, with net profit attributable to stockholders increasing from J$11.3Bn in 2016 to J$19.9Bn in 2025, representing a 6.5% Compound Annual Growth Rate (CAGR), despite the disruption caused by the COVID-19 pandemic.
  • Following a decline to J$8.64Bn in 2021, earnings recovered to a record J$20.2Bn in 2024 before easing marginally by 1.3% to J$19.9Bn in 2025. The recovery was supported by balance-sheet expansion, with deposits increasing 33.4% between 2022 and 2025 to J$529.8Bn and performing loans rising from J$230.6Bn to J$345.6Bn, while net interest income increased from J$30.6Bn to J$50.0Bn over the same period.

(Sources: Scotia Group Jamaica Limited, JSE & NCBCM Research)