The Board of Jamaica Producers Group Limited (“JPG”) has approved the implementation of a Scheme of Reorganization by way of Amalgamation through which:
1. Certain subsidiaries, all of which are principally engaged in banana production or the processing and distribution of banana-related products in Jamaica and Central America (“participating subsidiaries”), would be transferred to Producers Holdings Limited (“Holdings”), a recently incorporated wholly-owned subsidiary of JPG.
1. Certain subsidiaries, all of which are principally engaged in banana production or the processing and distribution of banana-related products in Jamaica and Central America (“participating subsidiaries”), would be transferred to Producers Holdings Limited (“Holdings”), a recently incorporated wholly-owned subsidiary of JPG.
1. Certain subsidiaries, all of which are principally engaged in banana production or the processing and distribution of banana-related products in Jamaica and Central America (“participating subsidiaries”), would be transferred to Producers Holdings Limited (“Holdings”), a recently incorporated wholly-owned subsidiary of JPG.
1. Certain subsidiaries, all of which are principally engaged in banana production or the processing and distribution of banana-related products in Jamaica and Central America (“participating subsidiaries”), would be transferred to Producers Holdings Limited (“Holdings”), a recently incorporated wholly-owned subsidiary of JPG.
- Holdings would be adequately capitalized
The capitalization of Holdings and the transfer of participating subsidiaries’ shares to Holdings by JPG would be in exchange for the issue of shares by Holdings to JPG. The subsidiaries’ shares would be transferred based on valuations.
On completion of the Amalgamation, JPG will own the participating subsidiaries through Holdings, and a board of directors will be appointed to direct and oversee the successful development of businesses carried on through Holdings.
JPG’s Board believes that this will enable the Group’s traditional agricultural businesses and its vertically integrated snack food business to be carried on through a wholly-owned but independently operated subsidiary with more specific emphasis and focus.
JPG has a number of businesses with excellent growth prospects. The sale of our 65% shareholding in JP Fruit Distributors has strengthened the Group’s balance sheet, providing the financial flexibility to more effectively leverage our core competencies and create shareholder wealth. We are focused on the changes we need to make to take the Group forward in the interest of our shareholders. This process is ongoing and will be reviewed early in 2007.
