Jamaica Producers Group sells most of its 32% stake in SAJE Logistics associated company
Jamaican conglomerate, Jamaica Producers Group (JPG), has offloaded most of its 32 per cent shareholding in its related real estate and property management company, SAJE Logistics Infrastructure Limited.
JPG has entered into an agreement selling 22.1 per cent of its equity in SAJE, which is primarily involved in land and investment holdings in the Newport West area of Kingston and forms part of JPG’s Logistics and Infrastructure Division. The name of the buyer has not been disclosed.
SAJE, formerly the Shipping Association of Jamaica Property Limited, has been investing in real estate for well over 30 years.
JPG announced on Tuesday last in a regulatory filing with the Jamaica Stock Exchange (JSE), where its shares are traded, that it is expected to fetch $1.9 billion from the sale.
JPG said it will use the proceeds of sale to continue to invest in its food, drink and logistics and infrastructure businesses. The Jamaican conglomerate also announced that its interest in SAJE, which is held indirectly through a subsidiary, has in turn been sold to SAJE and/or its nominees.
JPG will retain a 9.5 per cent interest in SAJE through its subsidiary, Kingston Wharves Limited. In line with the positive performance of SAJE during the time in which JPG held an interest, JPG is expected to report a material gain on sale in its upcoming third quarter financial statements.
JPG has emphasised that prior to the sale, SAJE was recognised as an associated company of the group, and based on the company records was part of its Logistics and Infrastructure Division, which includes businesses focused on logistics, transportation, port operations and other infrastructure investments.
Jamaica Observer at: https://bit.ly/3165QX6