Scotiabank Jamaica minority shareholders back buyout

Minority shareholders of Scotia Group Jamaica (SGJ) voted to accept a buyout by parent company Scotiabank Caribbean Holdings Ltd (SCHL), clearing a key hurdle towards taking the island’s second-largest bank private.

On Thursday, SGJ shares dropped 2.0 per cent during midday trading on the Jamaica Stock Exchange (JSE), with sellers offering shares at $72.50.

“Jamaica is a priority market, and we will continue investing in our business, our people and the communities we serve,”stated Jabar Singh, president of Scotiabank Dominican Republic and the Caribbean, in a release following the vote.

The deal remains subject to court approval and other customary closing conditions. If these are satisfied, it is expected to close in the fourth calendar quarter of 2026, ending more than 57 years of the bank’s shares trading on the JSE.

The Bank of Nova Scotia has operated in Jamaica since 1889 and has about 1,800 employees and 28 branches. SGJ had $774 billion in assets as at October 2025.

“As we move through the next phase of this process, we will complete the scheme of arrangement and finalise the transaction with our minority shareholders,” SGJ President and CEO Audrey Tugwell Henry in a release following the vote. “Scotia has been part of the business landscape for more than 137 years and our commitment to Jamaica remains unwavering.”

She said the focus of the local business remains on its clients, employees and communities.

Under the deal, minority shareholders would receive $75 per ordinary stock unit. That is a premium of about 38 per cent to the 30-trading-day volume-weighted average price as at June 11, the last trading day before the transaction was announced, according to a Scotiabank press release.

Scrutineers from PwC Corporate Services Jamaica Ltd said in a preliminary report that about 77 per cent of shareholders voting in person or by proxy backed the deal, representing about 97 per cent of the ordinary stock units voted. SCHL also voted in favour at a separate court-convened meeting. JSE representatives are still doing a detailed count, and the final results are not expected until later this week.

Roughly 500 people packed the grand ballroom of the AC Hotel in St Andrew for the extraordinary general meeting. Registrars added extra resources to handle the crush, as most attendees arrived about 15 minutes before the scheduled 11 a.m. start. The scheme was put to a vote at about 3:30 p.m., after spirited contributions from minority shareholders, some of whom claimed the offer was too small.

business@gleanerjm.com