Kintyre enters EV market through share issuance, diluting existing shareholders

Kintyre Holdings (Ja) Ltd has acquired a majority stake in an electric vehicle (EV) dealership in a deal expected to reach $100 million, financed through the issuance of new shares, marking the company's entry into Jamaica's emerging EV market.

"The new shares were approved at our annual general meeting," Chairman, President and Chief Executive Officer Tyrone Wilson told the Financial Gleaner on Friday.

Wilson said Kintyre acquired a 75 per cent stake in the EV dealership, with the deal funded through the issuance of more than $50 million in Kintyre shares. He confirmed that the new shares covered both the EV dealership stake and the build-out of service, parts, and showroom infrastructure, together securing the 75 per cent position.

Wilson said the total investment is expected to double. "The entire investment is going to be around $100 million — outside of purchasing vehicles, which will be about another $50 million," he said.

The initial lineup comprises three models manufactured by Chinese EV maker JMEV — the E-Light sedan, the E-Wind crossover SUV, and the compact E3. A decision on establishing a showroom is expected within six months, depending on market response, signalling a cautious but structured entry into Jamaica's EV space.

Share issuance drives dilution

Kintyre's issued share capital moved from 589 million units last year to roughly 1.9 billion shares, resulting in dilution of existing shareholders.

Crucially, the share count increase was not solely tied to the EV transaction. Wilson confirmed that the issuance also covered other corporate activity. "It included other deals also, such as our manufacturing plant," he said.

Wilson argued the dilution reflects deliberate balance sheet building rather than capital mismanagement. "It's always better to have a slice of a melon than a grape… shareholders now have shares in a much stronger company," he said.

Structure and subsidiaries

The EV dealership is housed under Affinity Ventures Group, a wholly owned subsidiary established last year to aggregate Kintyre's consumer-facing businesses. The automotive division will operate under the brand Affinity Automotive Group. Kintyre also holds a minority stake in a distribution company operated by Florida-based Rush Hour Engineering.

"It's a new subsidiary… all the consumer products, the physical products, we're running under that and then down the road we spin off what we want into their own entity," he said.

Deputy Chief Executive Officer and Chief Investment Officer Adrian Smith said the venture positions the company within a high-growth sector. "This partnership represents another strategic move by Kintyre Holdings as we continue to build diversified revenue streams and position the Company within high-growth sectors. Electric vehicles and renewable transportation solutions are part of the future, and we are pleased to be establishing an early position within the Caribbean market," Smith said.

neville.graham@gleanerjm.com