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Panjam considers APO at special Board meeting

Panjam Investment Limited convened a special board meeting to consider returning to the capital market to raise money for expanding its investment pipeline.

A stock split was also considered by the Panjam board at yesterday’s special meeting.
(Photo: panjam.business.suite)

The meeting took place yesterday March 3 at which time the board voted on a proposal for an Additional Public Offer (APO) of shares to raise funds for investment opportunities as well as expanding the business. This announcement comes three months after PanJam announced last November that it has entered into an agreement with Portland Private Equity.

Panjam and Portland agreed to each acquire a 15 per cent ownership stake in the Montego Bay based Outsourcing Management Limited, which trades as itelbpo. The special board will also consider two other options available to the company. 

These are an increase in the authorised share capital of the company to facilitate the APO as well as a stock split. A stock split is usually engineered to ensure that there is no dilution of the stock’s value to investors.

In a stock split shareholders benefit from a greater volume of shares held in the company but there is no direct benefit in terms of dividend payments. These options, if recommended by the board, will be put to the shareholders for approval at an Extraordinary General Meeting (EGM) to be convened with the appropriate notice.

The Panjam building (to the left in New Kingston Jamaica (Photo: panjam.com)

In a notice to the Jamaica Stock Exchange (JSE), where its stocks are traded, Panjam states that it will provide further details after the board has resolved to make any proposal to the shareholders at the EGM in relation to the APO, stock split and an increase in the company’s authorized share capital.

Panjam has invested in Jamaica for over 50 years, and is among the largest publicly-listed companies in the Caribbean. As an investment holding company, PanJam generates shareholder returns through three distinct activities.

Panjam and Portland agreed to each acquire a 15 per cent ownership stake in the Montego Bay-based itelbpo after signing an agreement last year.

It provides property management services in Jamaica, including rental, management and development of commercial real estate properties, and captive insurance. The company also takes actively-managed positions in both public and private companies, throughout the Caribbean but primarily in Jamaica.

It also trades equities and fixed income assets for its proprietary portfolio.