SSL Venture Capital board votes to accept Micro Financing bid

Micro-Financing Solutions Limited’s bid to purchase Jamaican listed venture capital company, SSL Venture Capital, has been accepted.

The company’s board last Friday (March 18) voted to accept the bid to purchase 100 per cent of SSL Venture Capital’s outstanding share capital for some $38 million. The $38-million sale price for SSL Venture Capital, which has been insolvent for the past year and has been struggling to maintain profitability, represented one-tenth of the market value of shares.

At the time of the offer, on January 17, the stock market value of the shares was $512 million. Since then, the stock market price has appreciated to now valuing much more that $512 million.

Micro-Financing Solutions, which is a sub-agent of Lasco Moneygram and Western Union, is buying SSL Venture Capital at the price of $0.0948 per ordinary share. 

MFS DOESN’T INTEND TO HAVE COMPANY DELISTED

Investment and brokerage firm Stocks and Securities Limited (SSL) is the primary shareholder in SSL Venture Capital, owning 79 per cent of the issued shares with 15 per cent being owned by mostly former executive employees and directors and the balance of six per cent equity being owned by the general public.

It has been reported that Micro-Financing Solutions, which is based at #2Suite at 2 Trafalgar Road, Kingston 5 doesn’t intent to have the company delisted from the Jamaica Stock Exchange and, as such, will not move to acquire all 100 per cent share equity at this time.

Micro-Financing Solutions’ take offer circular, published on March 4, 2022, was withdrawn on the same day.

This was done to facilitate the company, which offers short-term funding solutions to both individuals and micro, small and medium-size companies, entering into a formal brokerage agreement to effect the sale of the shares.

This exercise was successfully completed over a week ago. This entering into of the formal brokerage agreement has allowed for the resubmission of Micro Financing Solutions’ takeover bid circular.

SSL Venture Capital was formed in 2018 as a result of a decision of the SSL board, chaired by businessman Mark Croskery, whose father, Hugh Croskery, founded SSL.

As at June 30, 2021, SSL Venture Capital had accumulated deficit of J$123.4 million in comparison to J$222.5 million in 2020. Also as at June 30, 2021, SSL Venture Capital’s current liabilities exceeded its current assets by J$73.2 million coming from J$18.3 million in 2020.