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JM | May 2, 2021

Goodyear Jamaica to make final shareholder payments later this month

/ Our Today

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Some 2,600 shareholders to get payment of $0.63 per share. (Photo: Jamaican Journal)

Goodyear Jamaica Limited, which has been in voluntary liquidation since 2008, is to make final payment of $0.63 per share to shareholders later this month.

The payment will be made to shareholders on record as at December 19, 2008. This payment will be made on May 21, 2021, subject to a four per cent transfer tax.

There are approximately 2,643 shareholders on Goodyear’s books. The St Thomas-based tyre company has advised that its registrar and transfer agent, the Jamaica Central Securities Depository (JCSD) Limited has brought to its attention the fact that a number of shareholders are without current addresses.  

As such, Goodyear is advising shareholders, who have changed their address to contact the JCSD at 40 Harbour Street in Kingston.

Additionally, those who have not already done so should contact the JCSD to obtain and complete the mandate form to facilitate direct deposits to their bank account.

Requirements for updating addresses

To update the address, shareholders will be required to provide instructions in writing Along with a valid identification e.g. drivers’ license and a copy of a share certificate. An interim payment of $1.75 per share was made to ordinary shareholders in late 2009, which was one year after the tyre company announced that it would shutter its operations and exit Jamaica for good.

The company’s stock market value at the time of delisting was $193.644 million, based on a share price of $3.26. Goodyear opted for voluntary liquidation in 2008, nearly two years after a fire consumed its inventory from which the company never fully recovered.

It reported a net loss of $48 million at financial year ending December 31, 2008. The company began business in Jamaica in 1965, as a manufacturer of tyres, operating a plant in Morant Bay, St Thomas, since 1967.

Scaling back and exiting Jamaica

However, the company scaled back operations in 1995, locked down the factory and retreated to Kingston, as distributor of tyres made by sister operations elsewhere and focused on sales and marketing for Goodyear’s Caribbean business.

Jamaican shareholders at the announcement of the liquidation were told to expect at least 80 per cent compensation per dollar of assets liquidated after debt repayments.

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