A private company, Micro-Financing Solutions, wants to pay less than a tenth of market value for full ownership of SSL Venture Capital Jamaica Limited (SSLVC)
And SSLVC’s board said it was considering the offer.
“SSLVC has advised that the company has received an offer from Micro-Financing Solutions Limited on January 17, 2022, to purchase 100% of the issued share capital of the company at a price of $0.0948 per common share,” according to a statement on the Jamaica Stock Exchange.
Micro-Financing wants to pay $38 million for the 400 million units. The shares are worth $512 million on the stock exchange. They are trading at around $1.00 in the market compared to $0.90 at the start of the year.
SSLVC sold all of its operating companies in the past fiscal year, but still retains assets worth $25 million. Losses incurred over the years, however, resulted in accumulated debt and negative equity of $46 million.
Micro Financing Solutions Limited is a money services company that offers micro loans, foreign exchange, remittances and bill payment. The company operates from three offices: two in New Kingston and one on Spanish Town Road.
Board and shareholder approval to sell would result in the listed company’s second acquisition.
In July 2018, shareholders of Stocks and Securities Limited agreed to acquire majority shares of C2W Music Limited to save the company from financial failure. This resulted in the change of its stock symbol from C2W to SSL.
“The board and senior management continue to consider possible solutions to the current difficulties, but if the opportunity arises for a new injection of capital based on the restructured balance sheet, the continuing uncertainties of the COVID 19 pandemic remain problematic for potential investors. In its search for a solution, the board continues to keep the interests of shareholders in mind,” SSL said in its September results.
The loop is better in application. Personalize your newsfeed, save articles for later, view your reading history and more. Click on the links below to download the app for Android and IOS.