Pan-Jam profit tops $3b
Pan-Jamaican Investment Trust should receive roughly $311 million from the sale of its 20.8 per cent stake in Hardware & Lumber (H&L).
Argyle Industries Inc, which recently acquired 58.15 per cent of H&L from GraceKennedy, then made an offer, which closes March 24, to acquire all outstanding shares for $18.50. Pan-Jam has accepted the offer for its 16.84 million shares, as reaffirmed in its newly released annual financial results.
Pan-Jam, through its subsidiaries and associated companies engages in property development and management, banking, manufacturing, retail, trade, financial services and investment.
The company made a profit of $3.25 billion at year end December 2015, up from $2.85 billion.
Its revenue at $1.89 billion dipped slightly from $1.9 billion a year earlier. Core property revenue slipped from $1.55 billion to $1.48 billion due in part to the departure of a "prominent" but unnamed tenant from space in New Kingston.
Still, the company's bottom line benefited from the 13.7 per cent rise in its profit share from associated companies.
The bulk of Pan-Jam's earnings comes from its stake in insurance and banking conglomerate Sagicor Group Jamaica. In 2014, Sagicor generated returns of $2.69 billion for Pan-Jam; this year Sagicor accounted for $3.05 billion.
Pan-Jam investments also include stakes in Chukka Caribbean Adventures Limited, the Marriott by Courtyard Kingston hotel through Caribe Hospitality Jamaica Limited, Mavis Bank Coffee Factory Limited; and Walkerswood and Busha Browne's spices through New Castle Company Limited. Its newest holding is a 50 per cent interest in Kingchurch Property Holdings Limited, through which the former Oceana hotel in downtown Kingston is being redeveloped.