Due diligence activities already completed and valuation of assets finalised

The Government of Jamaica (GOJ) is privatising the defunct Jamaica Exotic Flavours and Essences (JEFE) Company Limited.

Cabinet has approved the sale of the company’s assets and will also move towards the involuntary winding-up of the entity and any other legal options available to the GOJ for winding up.

The GOJ has a 90 per cent stake in the company and the other 10 per cent is owned by a private party shareholder, who has pre-emptive rights.

Our Today understands that due diligence activities on the company have already been completed and that a valuation on the GOJ’s shares in the business has just been finalised. The privatisation is being carried out by the Development Bank of Jamaica.

Jamaica Exotic Flavours and Essences, which is located in St Andrew is part of the fruit and vegetable processing industry. JEFE produces high quality essences and purees for the food and beverage industry from Jamaican fruits, vegetables and condiments.  

The company creates essences that tantalise the taste buds and is dedicated to the pursuit of excellence, using knowledge, creativity, innovation and technology to provide its customers with the highest quality products and service.

NOT OPERATING SINCE 2012

However, JEFE had not been operating commercially and had ceased related activities since 2012.

In announcing Cabinet’s decision to privatise the loss making entity, Minister of Education, Youth and Information, Fayval Williams said during Wednesday’s post Cabinet press briefing, held at Jamaica House in St Andrew, that the move to offload the company was due to the fact that it has not been adding value to the operation of the Government of Jamaica.

In addition to the assets of the company, Williams reported that JEFE has goodwill and value of the brand in the amount of some $25 million.

In giving details of the planned privatisation, Williams explained that, “the mandate of the JEFE was to utilise Jamaica’s primary agricultural products and appropriate technology to extract high levels of flavour compounds for sale to the international market”.