Sagicor: merger won't affect operations

Sagicor has told its customers that its merger with Alignvest Acquisition II Corporation will have no impact on current operations, either in the Caribbean or the US. The Caribbean financial services giant announced its merger with the Canadian investment firm last month, with a deal that cost US$536 million. Sagicor, based in Bridgetown, Barbados, was adamant that it was not a takeover, but a “business combination,” creating an entity worth US$900 million.

In a release yesterday, Sagicor said local executive teams will continue to lead the company, and policies, contracts, customer service representatives and financial advisers will remain unchanged. “This transaction will make our already strong competitive position even stronger, as we continue to focus on our objective of being the insurer of choice in the regions where we operate,” the company said.

The company had also announced it will be delisting from the Barbados and TT stock markets to list on the Toronto Stock Exchange. This will give it greater international exposure, greater access to capital to fund its future growth, and allow proper price discovery for shares, giving Sagicor the opportunity to unlock fair value for all shareholders, the company said. Sagicor has in the past complained that local stock market activity has undervalued the company’s shares.

Sagicor said it appreciated that these announcements and transactions are often complex, but will provide as much information as possible, directing customers to its website, www.sagicor.com, or else to e-mail comments and queries to SFC_GroupCommunications@sagicor.com.

The company added it will provide shareholders with an “explanatory statement” and convene a shareholders meeting by the end of March 2019. Subject to shareholder and regulatory approvals, the transaction is expected to close by the second quarter of 2019.