The GraceKennedy Group is announcing plans to further strengthen and expand its Financial Division through an offer by the holding company, GraceKennedy Financial Group Limited (GKFG), to acquire general insurance entity, Key Insurance Company Limited, a company listed on the Junior Market of the Jamaica Stock Exchange.
The offer follows the acquisition, in December 2019, of 15% of Key Insurance’s shares. In pursuing ownership of the entity, GraceKennedy intends to limit its share acquisition to not more than 80%, so that Key Insurance will remain listed on the Junior Market. The offer will be open for acceptance by Key Insurance’s shareholders at 9am on January 27, 2020, and end at 4:30pm on February 17, 2020.
In speaking to the acquisition, Group CEO, Don Wehby disclosed that mergers and acquisitions will be a key strategic driver for growth for the GraceKennedy Group this year. “We will be focusing on growing our core business in the areas of Food & Financial services, both in Jamaica as well as the English speaking Caribbean. M&A opportunities are therefore being looked at very carefully,” he said.
Mr Wehby continued, “We did our due diligence, and having looked at the performance of Key Insurance to date, we see potential for the company to grow. GraceKennedy’s aim is to properly capitalize it, and maximize shareholder value. Naturally there will be synergistic value from Key joining the GK family, as we have complementary businesses within the GraceKennedy Financial Group.”
Listed on the Junior Market of the Jamaica Stock Exchange, Key Insurance was incorporated in 1982, and has grown its customer base, with offices located in Kingston, Portmore, May Pen, Ocho Rios, Montego Bay and Mandeville. The company will be the newest member of the GK Financial Group, which comprises Western Union, Bill Express, FX Trader, GK General Insurance, Allied Insurance Brokers and First Global Bank.
The Takeover Bid Circular and the Form of Acceptance and Transfer in relation to the Offer have been delivered to the Board of Directors of Key, the JSE and the TTSE and will be sent to Key shareholders. In the meantime copies may be downloaded from the JSE website at www.jamstockex.com, or the GK Capital website at www.GK-capital.com.