Scotia buyout clears shareholder vote; court approval remains

Scotiabank Jamaica’s minority shareholders have approved SCHL’s proposed J$75-per-share buyout, bringing the transaction a step closer to completion and an eventual departure from the stock exchange.

The October 7 vote received backing from roughly 77 per cent of shareholders voting in person or by proxy and approximately 97 per cent of the share units voted, according to preliminary PwC figures reported by The Gleaner. The detailed final count was still to be released through the exchange.

The two support figures describe different aspects of the meeting. The first measures participating voters; the second measures the shares they represented. The higher share-weighted result means the votes cast in favour represented a larger proportion of the participating capital than of the participating shareholder count.

SCHL also supported the scheme at its separate court-convened meeting. Court approval and customary closing conditions remain outstanding, with the transaction expected to close in the fourth quarter of 2026 if they are met.

The offer represents a premium of about 38 per cent to the 30-day volume-weighted average market price on June 11, the final trading day before the announcement, according to the transaction account. A volume-weighted average gives greater weight to prices at which more shares changed hands.

That historical benchmark helps explain the quoted premium, although shareholders can differ over whether a trading-price comparison adequately reflects the value of the business. Around 500 attended the meeting, and the proposed price was debated. Strong aggregate voting support therefore coexisted with objections from some investors.

The Gleaner’s Thursday midday trading snapshot put shares on offer at J$72.50, down roughly two per cent.

Jabar Singh, a Caribbean group executive, and Jamaica chief executive Audrey Tugwell Henry said the group remained committed to Jamaica and that services would continue. Scotiabank’s Jamaican operations date to 1889.

The report describes approximately 1,800 employees, 28 branches and J$774 billion in assets at October 2025.

Completion would end more than 57 years of public share trading. For minority shareholders, the remaining issue is whether the scheme receives its final approvals and closes on the stated terms. For customers, the executives’ position is that the ownership change would leave the banking operation in place.