The GraceKennedy Group yesterday announced its intent to acquire 80 per cent of KEY Insurance Company.
The move is expected to expand GraceKennedy’s financial division and follows its purchase of 15 per cent of Key Insurance’s shares in December 2019.
The acquisition will be done through holding company, GraceKennedy Financial Group Limited, which will limit its shares purchase to 80 per cent to allow Key Insurance to remain on the Junior Market of the Jamaica Stock Exchange.
“We will be focusing on growing our core business in the areas of Food & Financial services, both in Jamaica as well as the English speaking Caribbean…”– Group chief executive office of the GraceKennedy, Don Wehby
Group chief executive office of the GraceKennedy, Don Wehby, said similar mergers and acquisitions will be a key part of the company’s growth strategy in 2020. “We will be focusing on growing our core business in the areas of Food & Financial services, both in Jamaica as well as the English speaking Caribbean. M&A opportunities are therefore being looked at very carefully.”
Wehby said the move was done after careful consideration. “We did our due diligence, and having looked at the performance of Key Insurance to date, we see potential for the company to grow. GraceKennedy’s aim is to properly capitalise it, and maximise shareholder value. Naturally there will be synergistic value from Key joining the GK family, as we have complementary businesses within the GraceKennedy Financial Group.”
The offer by GraceKennedy will be open to Key Insurance’s shareholder on January 27 beginning at 9:00AM until February 17 ending at 4:30PM.
The GK Financial Group includes Western Union, Bill Express, FX Trader, GK General Insurance, Allied Insurance Brokers and First Global Bank.