Scotiabank to take Jamaica unit private in $61.50 buyback and JSE exit

Scotia Group Jamaica Limited has announced plans to leave the Jamaica Stock Exchange through a share buyback that would take the banking group private after more than 60 years of public listing. Under a definitive agreement with majority shareholder Scotia Caribbean Holdings Limited, all issued and outstanding shares of Scotia Group Jamaica that SCHL does not already hold will be repurchased at $61.50 in cash per share. SCHL currently owns 71.78% of the company's total shares.

President and chief executive Audrey Tugwell Henry outlined the arrangement during the bank's second-quarter financial results briefing. She said the transaction is intended to improve capital and operational efficiency and give Scotiabank greater flexibility to respond to market opportunities, while reaffirming the institution's commitment to Jamaica.

"This transaction is aimed at enhancing capital and operational efficiency and Scotiabank's agility in responding to market opportunities," Henry said.

Account holders were told the proposal would not alter their relationship with the bank. Henry linked the development to a broader global strategy, noting that in December 2023 Scotiabank's worldwide chief executive, Scott Thomson, told investors that capital allocation would prioritise Canada first, then the United States, Mexico and the English-speaking Caribbean. She said Jamaica remains the flagship market in the region and that Scotiabank has maintained a continuous presence on the island since 1889 without changing its name, selling off parts of the business or changing ownership.

During a question-and-answer session, Henry was asked whether the decision reflected any loss of confidence in Jamaica. She said management remains optimistic about the country's economic outlook and congratulated the Government on its handling of the period after Hurricane Melissa. While acknowledging some GDP impact from the storm, she cited regulatory support for the National Reconstruction Authority and rebuilding efforts as grounds for confidence in Jamaica's future.

For the half year ending April 30, 2026, Scotia Group Jamaica reported net income of $10.1 billion. Its asset base grew by $80.3 billion, or 10.5%, to $843.9 billion. The board of directors also approved a dividend of 45 cents per stock unit for the second quarter. Scotiabank has been among the most consistent dividend-paying stocks on the exchange, held by individual investors and pension funds alike.

Henry described the buyback as representing almost $500 million Canadian in direct financial investment into the economy. She said shareholders would gain liquidity to pursue other investment opportunities and noted that the parent company's shares trade on both the Toronto and United States stock exchanges, offering further options for capital deployment.