The Board of Directors of Life of Jamaica Ltd. (“LOJ”) and First Life Insurance Co Ltd. (“First life”) are pleased to announce that LOJ has agreed to purchase the insurance business of First Life as well as First Life’s ownership interest in Pan Caribbean Financial Services Ltd (“PCFS”), subsequent to completion of its merger with Manufacturers Sigma Merchant Bank.
The transactions will be financed partially by the issuance of new shares in LOJ such that First Life shareholders will own 25% of the shares in LOJ and Sagicor Financial Corporation’s shareholding will reduce from its current holding of just under 80% to approximately 60% of the company.
Independent Valuations of First Life, LOJ and PCFS have been carried out by PricewaterhouseCoopers. Standard and Poor’s Corporate Value Consulting are to be asked to render their opinion regarding the fairness, from a financial point of view, of the consideration to be paid in connection with this acquisition.
The transaction is subject to the approval of the relevant regulatory authorities.
This transaction will consolidate LOJ’s position as the largest and most profitable life insurance company in Jamaica and gives it a substantial shareholding in a major banking entity.
