The Sagicor Group (SJ), the holding company for Sagicor Life Jamaica (SLJ) and all its subsidiaries, received approval from shareholders to exchange ordinary shares in Sagicor Investments for ordinary shares in Sagicor Group (SG). This follows the move late last year to replace shares of SLJ with SG shares on the stock exchange, which is all a part of the thrust to improve capital management and align the Group’s organisational structure with the requirements of the new omnibus legislation for deposit taking institutions. Of note, larger fi nancial groups such as Scotia have already gone through this reorganization process.
This swap will result in shareholders of Sagicor Investments receiving 1.8 units of Group shares for each Sagicor Investments’ shares owned. On Friday, the share price of Sagicor InvestmentsLimited closed at $17.10 while the Group shares closed at $9.36. This means that investors who purchased shares of the investment subsidiary at the current market price and subsequently entered into the swap would have earned a lower value of $16.85 for every unit of shares swapped. Relative to the start of the year when shares of Sagicor Investment’s traded at $16.53, investors who bought the stock at that market price would post an immediate gain upon the execution of the swap.
Once the process of the swap is completed, Sagicor Investments will be delisted from the JSE and the newly issued Sagicor Group shares listed by introduction on the Stock Exchange shortly thereafter.