Sun | Dec 4, 2022

Mayberry Investments to restructure

Published:Sunday | July 10, 2022 | 12:09 AM

Christopher Berry, executive chairman of Mayberry Investments Limited.
Christopher Berry, executive chairman of Mayberry Investments Limited.

Mayberry Investments Limited, MIL, has advised of its intention to incorporate another company in St Lucia that will become the new parent for subsidiaries Mayberry Jamaican Equities Limited, MJE, and Widebase Limited, both of which are also...

Mayberry Investments Limited, MIL, has advised of its intention to incorporate another company in St Lucia that will become the new parent for subsidiaries Mayberry Jamaican Equities Limited, MJE, and Widebase Limited, both of which are also registered offshore.

The plans to restructure the group operation come amid regulatory concerns over possible “opaqueness” of the operation of international business companies, or IBCs, and the potential impediment to regulatory oversight.

“This is not the preferred regulatory structure for regulators,” Mayberry Investment said in a market filing to the Jamaica Stock Exchange regarding its intention to restructure through a scheme of arrangement.

Such schemes require pre-approval by the Supreme Court, which then mandates that a general meeting be held for shareholders to vote their approval or disagreement with the restructuring plan. Once the shareholders agree, the company returns to court for a final sign-off on the restructuring programme.

At present, Mayberry Investment, which operates from Oxford Road in New Kingston, is currently the principal company in the group. It owns the majority of MJE, a company in the business of investing in tradable equities, and 100 per cent of Widebase Limited, a company incorporated in 2016 and is in the business of investing in and holding unquoted or non-marketable securities.

Both MJE and Mayberry Investments are listed on the Jamaica Stock Exchange. MJE will remain listed after the reorganisation, but MIL will be replaced by Mayberry Group Limited as a listing by introduction.

In a move expected to facilitate “greater regulatory transparency and corporate agility”, Mayberry Investments said it would establish Mayberry Group Limited as the new parent to hold MJE and Widebase, and Mayberry Group would, in turn, create a new financial holding company in Jamaica to be called Mayberry Holdings Limited, which will become the parent company of Mayberry Investments with 100 per cent interest.

The current owners of the MIL stock will, by virtue of the new structure, become direct shareholders of the ultimate parent, Mayberry Group Limited.

Mayberry, a licensed securities dealer listed on the JSE since 2005, is in the business of dealing in securities, portfolio management, investment advisory services, operating a foreign exchange cambio, managing funds on behalf of clients and administrative and investment management services for pension plans.

It has also been the main go-to company for arrangement of junior market IPOs.

Mayberry Investments currently has total funds under management of approximately $21 billion and serves a client base in excess of 15,000 customers.

Executive Chairman Christopher Berry said in the market filing that the reorganisation is expected to put the Mayberry Group in a strategic position to pursue inorganic growth opportunities both in the regulated and unregulated sectors. Inorganic activity typically refers to mergers and acquisitions.

“In the financial regulatory sector, the group would use Mayberry Holdings Limited as the financial regulatory holding company, and for opportunities in the unregulated or ‘real’ sector, it would use Mayberry Group Limited, the ultimate parent company,” MIL said in the statement.

karena.bennett@gleanerjm.com