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Contents Cover Story
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BUSINESSUITE EVENT CALENDAR
IPO Success! Jamaicans Jump To CoInvest With Michael Lee Chin, the Richest Man In Jamaica 550 applicants have bought into the idea of investing with one of the richest men in the world resulting in 23.5% oversupscription of Michael Lee Chin’s Portland JSX IPO.
COMPANY REPORTS
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Stephen Facey’s PANJAM Issues J$340 Million In Urban Renewal Bonds To Refurbish Former Oceana Hotel Pan Jamaica Investment Trust (PanJam) has issued J$340 Million in Urban Renewal Bonds, the proceeds of which will be used to the ...
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Editorial
MERGERS AND ACQUISITIONS
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Taking Control Of The Hour Glass An invitation was sent to me recently with the phrase ‘6pm Sharp’. Being how I am, I showed up at 6pm…sharp, only to find that the organizers...
Jamaica Aggregates Acquires Jamaica Producer’s St. Mary based Four Rivers Mining Company Limited. Jamaica Aggregates has acquired Jamaica Producers Group’s ( JP) St Mary based Four Rivers Mining Company Limited.
WEEK IN REVIEW
REGIONAL
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BREXIT Surprise: UK Votes To Leave EU 51.9% of the total number of people who participated in Thursday’s UK Referendum voted to leave the European Union. This number ...
Businessuite Weekly
Regional Leaders Concerned With What the BREXIT Vote Means For the Caribbean Regional Heads of Government have begun to express concern over last week’s result of the UK Referendum. Last Thursday, 52% of UK... Issue: 10
Contents Credits
The Week Ahead
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BlogAmo’s Digital Media Week Set For June 27-30 Local Digital Agency BlogAmo’s Digital Media Week kicks of on Monday, June 27 under the theme “Digital 876: Building Brands For Global Impact”.
Content Director Kayla Wright
The Businessuite News Centre BNC
Publisher and Editor in Chief
Aldo Antonio aldo@blackslateholdings.com
Subscription and Distribution Advertising Sales
businessuitemagazine@gmail.com
Graphic Design and Layout: Bonito Thompson
Photo credits
Sourced from the internet and contributed
Social Media
CLICK Digital Agency
Businessuite News Weekly Digital
Published Every 2nd, 3rd and 4th Monday Morning More in-depth coverage and reporting of Business News and Features; practical, how to, hands on business information; content focused on Caribbean business leaders aggressively seeking out opportunities for growth and expansion. Today, SME business owners and Entrepreneurs are more interested in how to do something and Businessuite News Weekly is delivering content to hundreds of thousands of Caribbean SME decision makers to help them make better strategic decisions about purchasing products and services for their businesses.
PUBLISHERS:
Businessuite News Centre BNC A division of the Blackslate Media Group “Silicon Mountain” Mandeville Jamaica For all information 876-630-2216 (Kingston Office) 876- 342-9332 (Mobile) 876-630-2216 (Mandeville Office) 876-542-3719 (Mobile) aldo@blackslateholdings.com OR email blackslateholdings@gmail.com
Corporate Information:
Blackslate Media Group Ltd, “Silicon Mountain” Mandeville Jamaica 876-631-5418 (Kingston Office) 876-458-3253 (Mobile) 876-631-4505 (Mandeville Office) 876-280-9192 (Mobile) To learn more about Blackslate go to www.blackslateholdings.com aldo@blackslateholdings.com
ISBN Number
ISSN 0799-4427
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Businessuite Event Calendar 5
Wednesday, June 29
Monday, June 27
Advertising Agencies Association of Jamaica AGM Venue: PSOJ 39 Hope Road
General Accident Insurance Company AGM Venue: 58 Half Way Tree Road
‘Understanding and Relating Purposefully to Union Practice’ - HRMAJ Workshop Venue: To be announced
Dolphin Cove Limited AGM Venue: Courtleigh Hotel & Suites
Jamaica Manufacturers’ Association Limited AGM Venue: The JMA Registered Office
Tuesday, June 28 Jamaica Chamber of Commerce Procurement Seminar Venue: Knutsford Court Hotel
Friday, JULY 1 JITSA Members Mingle Venue: The Alibi, Lee Gore Business Centre
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Issue: 10
Editorial By Kayla Wright
Taking Control Of The Hour Glass
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n invitation was sent to me recently with the phrase ‘6pm Sharp’. Being how I am, I showed up at 6pm…sharp, only to find that the organizers were still setting up for the event. The sad reality is that this isn’t a one in a million occurrence. Too often we tend to go off the concept of ‘Jamaican Time’ when organizing or even attending a function. During my high school tenure, when I thought I was more neat and artistic that I truly was, I opted to take Technical Drawing or TD for short instead of what I now consider would have been a more valuable class (for me) in French. Although I still struggle to draw even the simplest of objects, there is one life lesson that has stuck with me through all this time. Whenever we were late to class, our teacher at the time would always say to us “time is money, waste your time and you waste your money”. While some might not find that as inspiring or as intellectually deep as I did, it stayed with me. I made several attempts over the years to ensure that as best as I could, I refrained from wasting time and by extension, waste money. While I am yet to master the art, I try to live by the mantra branded in the back of my head that “time is money. If I waste my time, I’m wasting money’. The following represents some time management ‘hacks’ that have helped me in my efforts to take control of the flow of sand in my hour glass, I hope they provide some aide to you as well: 1. Prioritizing what needs to be done. There will always be a list of things that you need to get done for any given day.The idea is to get the most important things done first and work your way down. 2. Focus. The secret is to find what works for you and pushes you to focus. For instance, I find that listening to music while I write greatly improves my productivity and blocks out unwanted environmental distractions. As I said before, the idea is to find what works for you and put it to use. 3. Work with deadlines. There are several persons I know, myself included, who feel that they work better under stress or that cutting a deadline close gives you the much needed adrenaline push to do the work quickly. However the truth is that extra stress puts pressure on the brain and prevents it from functioning effectively. 4. And finally, work on being on time (or even early). This point relates directly to my initial rant about time management and the concept of “Jamaican time”. We live in a society where it is considered okay to be late because, “it’s just a Jamaican thing”. This really shouldn’t be the case.
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WEEK IN REVIEW BREXIT Surprise: UK Votes To Leave EU 51.9% of the total number of people who participated in Thursday’s UK Referendum voted to leave the European Union. This number reflects 17,410,742 of the total votes cast. This group involved British, Irish and Commonwealth citizens over 18 with a high turnout of 72%, with more people turning out to vote than in last year’s general election. Over 30 million people voted. Following the vote, David Cameron resigned as UK Prime Minister, indicating that he would step down by October to ensure the country has a “strong, determined and committed leadership”. The referendum followed a promise by Cameron himself to hold one if he won the 2015 general election, in response to growing calls from his own Conservative MPs and the UK Independence Party (UKIP), who argued that Britain had not had a say since 1975, when it voted to stay in the EU in a referendum. For the UK to leave the EU it has to invoke an agreement called Article 50 of the Lisbon Treaty. Cameron or his successor now needs to decide when to invoke this - that will then set in motion the formal legal process of withdrawing from the EU, and give the UK two years to negotiate its withdrawal. Cameron says he will go to the European Council next week to “explain the decision the British people have taken”. EU law still stands in the UK until it ceases being a member and that process could take some time. The UK will continue to abide by EU treaties and laws, but not take part in any decision-making, as it negotiates a withdrawal agreement and the terms of its relationship with the now 27 nation bloc.
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Territory South East London North West East South West West Midlands Scotland East Midlands Wales North East
Leave Remain 51.80% 48.20% 40.10% 59.90% 53.70% 46.30% 56.50% 43.50% 52.60% 47.40% 59.30% 40.70% 38% 62% 58.80% 41.20% 52.50% 47.50% 58% 42%
Northern Ireland
44.20%
55.80%
Issue: 10
COMPANY REPORTS Stephen Facey’s PANJAM Issues J$340 Million In Urban Renewal Bonds To Refurbish Former Oceana Hotel been a goal of Pan-Jam, and we are extremely pleased to be able to avail ourselves of the provisions of the Act in playing our part in the revitalisation of the city’s waterfront”. Oceana Hotel falls within a Special Development Area (“SDA”) for the purposes of the Urban Renewal (Tax Relief) Act that allows for the issuance of bonds without withholding tax being deducted from its interest payments. The tenure of the Bond is 7 years with an average life of 5 years when factoring in amortization. The coupon rate is fixed for 2 years and floating thereafter at the Government of Jamaica (GOJ) 6 Month WATBY plus 150 bps. The Bonds were taken up by a small group of large institutional investors in a private placement arranged and brokered by Scotia Investments Jamaica Ltd.
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an Jamaica Investment Trust (PanJam) has issued J$340 Million in Urban Renewal Bonds, the proceeds of which will be used to the refurbish the former Oceana Hotel overlooking Kingston Harbour.
According to PanJam Chairman and CEO, Stephen Facey, “the Urban Renewal Act was to designed to promote the development of areas like Downtown Kingston, an objective which has long
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According to Dylan Coke, Vice President – Origination & Capital Markets at Scotia Investments, “This was a very significant transaction as it demonstrates the ability of companies to raise funds at attractive rates under the Urban Renewal (Tax Relief) Act for developments in downtown Kingston and the appetite of investors for these types of Bonds.”
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IPO Cover Story
Success! Jamaicans Jump To CoInvest With Michael Lee Chin, the Richest Man In Jamaica
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550 applicants have bought into the idea of investing with one of the richest men in the world resulting in 23.5% oversupscription of Michael Lee Chin’s Portland JSX IPO. The IPO which ran from June 8 to June 22 represents the largest IPO of Ordinary Shares ever on the Jamaica Stock Exchange with funds raised exceeding the initial target of J$1.23 billion by $290 million closing at approximately J$1.52 billion. The company had gone to market with a total of 111,818,182 ordinary shares priced at J$11.00 each, was oversubscribed by 23.5%. The initial agreement for the IPO would have allowed new investors just under a 40% stake in the company, however, based on the overwhelming response; Portland JSX decided to upsize the offer.
Why An IPO? According to Managing Partner and Member of the Investment Committee, Robert Almeida, the IPO provided an exposure that is new to the Jamaican market place, as investors were able to diversify their investment portfolio across country, sector and currency. He says he is pleased Jamaicans chose to invest with Portland JSX as the decision to go market was based on the company’s efforts to “democratize investments and wealth creation”. “We are passionate about democratizing wealth creation and seek to contribute to that cause by creating investment opportunities that enable all investors to invest like the most eminent wealthy investors in the world”, Almeida said, “for this reason, we are pleased with the breadth of the subscription to the offering. Improving the returns Jamaicans earn on their investments is also an important contributor to economic growth.” Almeida says this idea of ‘wealth creation for all’ led to the decision to go public and invite ordinary individuals to invest. He says the opportunity was offered to allow regular Jamaicans the opportunity to not only have insight into Michael Lee Chin’s investment portfolio but to join him in his investments.
Investment Plans Proceeds from the IPO will be invested in Portland Caribbean Fund II. This is a private equity fund, which holds a portfolio of equity and/or debt securities of companies located in Latin America and the Caribbean. Global private equity investors in PCF II include International Finance Corporation (IFC), European Investment Bank (EIB), German Development Bank (DEG), Export Development Canada (EDC), Caribbean Development Bank (CDB) and Inter-American Investment Corporation (IIC). Almeida says so far, PCF II has made investments in three companies with several deals in the pipeline across multiple sectors. The Fund has investments in Panama Wind, a wind energy project in Panama; CFFI Ventures (Barbados) Inc (“CVBI”), an opportunity which resulted from the Cable & Wireless and Columbus Communications merger; and Clarien Group Limited (“CGL”) – the parent company of Clarien Bank Ltd (“CBL”) – a leading bank in Bermuda. He says there are also plans to invest in several other entities, in various sectors across the Caribbean as the company continues to diversify its portfolio through profitable investments. “Unlike peers in other markets which have optimized their portfolio risk and returns by diversifying their portfolios globally and making substantial use of private equity investments, most Jamaican institutions have been prevented from this investment best practice by regulatory or other constraints,” said the prospectus, adding that the listing of PJX forms a way to unlock that potential. Portland JSX is expected to list on the main market of the Jamaica Stock Exchange within the next four weeks.
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MERGERS AND ACQUISITIONS Jamaica Aggregates Acquires Jamaica Producer’s St. Mary based Four Rivers Mining Company Limited. Jamaica Aggregates has acquired Jamaica Producers Group’s (JP) St Mary based Four Rivers Mining Company Limited.
He says the sale is not expected to materially affect JP’s net worth or profits.
JP had previously announced its intention to offer its mining assets for sale as it had concluded that “the mining business was not compatible with its strategic focus on profitable growth in Food and Logistics business”.
For the 13-week period ended April 2, 2016, JP reported revenues of $2.2 billion representing an increase of 6.7% over the prior year. Gross profit in the First Quarter was up 6.4% relative to the prior year. Net profit attributable to JP shareholders was $150 million. This compares with $175 million in 2015.
According to a release from JP, Jamaica Aggregates Limited is a leading producer of construction aggregates in Jamaica and in due course intends to re-establish mining operations at Agualta Vale in St. Mary. CEO of JP, Jeffrey Hall says JP is “pleased that Jamaica Aggregates is seeking to expand its operations in Jamaica and has elected to re-establish a mining business in St. Mary. They have a solid track record in the business of construction aggregates and we wish them every success with this venture.”
However, revenues for the company’s Food and Logistics which was responsible for the mining company were down from $260 million in the prior year. Hall says this reduced revenues was entirely “as a result of our decision to scale back and restructure our mining operations in St. Mary with a view to shifting the business to a third party operator in due course”.
REGIONAL Regional Leaders Concerned With What the BREXIT Vote Means For the Caribbean
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egional Heads of Government have begun to express concern over last week’s result of the UK Referendum. Last Thursday, 52% of UK residents voted to leave the EU.
The implications are far-reaching globally, with serious consequences for financial markets, investment, trade and overseas development assistant. The pound sterling dropped to its lowest level in 30 years. According to Dominica’s Prime Minister, Roosevelt Skerrit, “the repercussions would be felt almost immediately in Dominica since the EU would lose a large chunk of its budget and it would have to restructure its whole approach to financing and development assistance.
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He says the “decision to leave the EU is going to have major, major impact to developing economies like ours which rely heavily on development assistance from the EU,” he stated, “so the focus now will be within the EU rather than outside the EU and matters relating to the relationship of the EU with the rest of the developing world”. Meanwhile, Grenada’s Prime Minister Dr Keith Mitchell noted “with great regret” the decision of the British people to leave the European Union and said the Caribbean region must use this decision to examine its own single market and economy, the implications of this for trade and other relations, and adjust accordingly. In the Cayman Islands, Premier Alden McLaughlin pointed to the volatility of the economy on the horizon and the possible impact on the relationship between the UK and its territories. He says while it is too early to make predictions, “certainly it will be profound, it will impact not just the UK … but the overseas territories, crown dependencies and indeed the wider world.”
Barbados’ Banks Holdings Limited To Cut 48 Workers Following AB InBev Acquisition
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arbados based Banks Holdings Limited (BHL) has announced its intention to cut 48 of its workers in an attempt to position the company for growth.
This announcement comes six months after BHL was acquired by AB InBev, a subsidiary of Brazilian company AmBev. According to CEO, Richard Cozier, the retrenchement was a “difficult decision but a necessary element of the company’s integration and alignment processes, which positions the group and its employees for growth”. He says in addition the need to align with the parent company, “the entire integration exercise would take full advantage of synergies between the two organizations and introduce new processes and systems necessary to drive the group’s profitability.” However, he says a positive feature of the acquisition has been the creation of several new positions in past weeks, all of which had been filled internally. “BHL is now part of a global, multi-national company and so the advantages associated with this are numerous,” he said. “This is one of those instances where things will get difficult before they get better but when they get better there will be plenty of opportunities now only for employees who remain after the restructuring exercise but other Barbadians in the labour force to possibly fill regional positions within Ambev.” 12
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Week Ahead BlogAmo’s Digital Media Week Set For June 27-30
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ocal Digital Agency BlogAmo’s Digital Media Week kicks of on Monday, June 27 under the theme “Digital 876: Building Brands For Global Impact”.
This year’s four day series is the group’s first staging of Digital Media Week, and the third staging of Social Media Day taking place on June 30. According to the Business of Digital, the principals of BlogAmo, Shane Bennett and Corve DaCosta, “it is the hope of BlogAmo to showcase to our local businesses, the opportunity for growth and the impact social brands can have on a large scale. We’re not just thinking bottom dollar, but how we can use our music, our personalities as well as our start-ups and Government officials to start conversations online that will lead to a change in legislation, business culture and job opportunities for Jamaicans on a whole”. BlogAmo says the expansion of Digital Media Week is due to the shifting needs of both business and consumers alike to use the digital space responsibly for maximum expression, e-commerce, social interactions and impact. Activities for the period include panel discussions, a ‘Women In Technology’ charity event, Digital start ups showcase and the annual Social Media Day party.
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