Scotiabank Canada Moves to Buy Out Scotia Group Jamaica Minority Shareholders

Scotiabank's Canadian parent is seeking to purchase the remaining public stake in Scotia Group Jamaica, a deal that would take the Jamaican banking group out of public ownership and make it a fully private company.

The offer applies to all SGJL shares not already controlled by Scotiabank Caribbean Holding, the company's majority shareholder. Scotiabank said the proposal is part of a wider push to improve how capital is used and how operations are managed across its regional business.

Scotia Group Jamaica said the board's independent directors have all supported the plan. Their recommendation led to a definitive arrangement agreement with Scotiabank Caribbean Holding.

The buyout still requires the backing of minority shareholders. A meeting is expected in the coming months for those investors to review the proposal and cast their votes.

The transaction is to be handled through a court-sanctioned scheme of arrangement under Jamaica's Companies Act. If shareholders approve it, the deal is expected to close in the fourth quarter of this year, once court approval and other normal conditions are satisfied.

After completion, Scotia Group Jamaica's shares are expected to be removed from the Jamaica Stock Exchange. Scotiabank said the total cash payment being offered to minority shareholders is about CA$500 million.