PanJam has acquired a 15% stake in a business process outsourcing (BPO) entity.
PANJAM Investments has acquired a 15% stake in International CX Limited as it increases its exposure to the business process outsourcing (BPO) sector and steps up its private equity ambitions amid another crisis.
PanJam is an investment holding company that includes income from management fees related to its subsidiaries, interest income and dividends from its associates and its proprietary investment portfolio. This includes ownership of Scotiabank Centre, Manor Park Plazas and the CIBC FirstCaribbean Building (New Kingston) as well as holding associated interests in Sagicor Group Jamaica Limited (SJ), New Castle Company Limited and Chukka Caribbean Adventures Limited.
PanJam made its first BPO investment in St Lucian IBC (International Business Company) Outsourcing Management Limited (as Itel) in November 2019 for a 15% stake valued at $606.31 million. The stake is now valued at $565.69 million for the group due to the $126.84 million share of the reduction in reserves upon acquisition. Itel’s revenue grew 48% from $6.78 billion to $10.05 billion in 2021 as it expanded in the region, but its net profit only increased by 27%. % to reach $275.94 million. Itel’s total asset base doubled to $9.55 billion, supported by a 153% increase in total liabilities to $8.57 billion.
PanJam has entered into a contractual agreement to acquire its stake in the start-up which was incorporated on December 6, 2021 in Saint Lucia as an IBC under number 2021-00227. The value of the acquisition was not mentioned in the company’s audited financial statements in 2021, while PanJam’s new chief executive, Joanna Banks, only noted that if the company needed capital in the future. , shareholders would provide the same.
The investment firm also disposed of $30.66 million worth of SJ stock which Banks said was part of the deployment of capital into growth projects. PanJam had disposed of $2.57 billion of its SJ property in its 2019 fiscal year, which boosted its net profit attributable to shareholders to a record $8.31 billion. PanJam’s 30.21% stake contributed $5.22 billion to its $5.46 billion share of associates’ earnings in 2021.
PanJam also sold its stake in the Downing Street Realty Fund II offered by the Downing Street Group in Canada for $202.09 million while acquiring funds XIV and XV for $178.74 million.
Although Banks did not elaborate further on the company’s private equity and investment plans, PanJam has been a big beneficiary of economic crises, as evidenced by its investments in Mavis Bank Coffee Factory and New Castle. PanJam purchased Mavis Bank through its joint venture for $56.03 million in October 2011 and realized a gain of $665.63 million in November 2016. New Castle was acquired for $177.52 million, a 25% stake when the company generated $673.14 million in revenue and had $787.70 million. in total assets. New Castle had 2021 revenue of $2.77 billion and had $796.19 million with PanJam’s stake valued at $829.29 million, which includes a dividend of $65.69 million. dollars.
The banks inherited a $64.35 billion balance sheet on July 1 from Stephen Facey, who served as CEO for 17 years and took over in 2004 with an asset base of $9.03 billion. She joined PanJam in September 2016.
“Strategic equity is a key pillar of PanJam’s business model. We are always on the lookout for investment opportunities and will execute if relevant transactions meet our investment criteria. In general, our local investment portfolio is made up of interests in well-managed companies in all sectors that will support and grow the Jamaican economy. The reduction of financial assets at amortized cost represents the sale of assets the proceeds of which were used to support investments across the business. PanJam’s cash management team continuously assesses market conditions and our cash requirements. If it is financially beneficial for us to refinance our August 2022 debt sooner than expected, we will do so,” Banks added.
PanJam’s revenue rebounded 109% to $4.30 billion as its investment portfolio generated $2.06 billion from a loss of $512.27 million impacted by unrealized losses in 2020 Overall net profit attributable to shareholders rose 106% to $7.20 billion.
The company will list the 42 residences divided into six penthouses and 36 apartments in its downtown Rok Residences for sale in the coming weeks. It will also develop two acres of undeveloped land in Norbrook for the end of 2022 once it finalizes the designs for the property. PanJam’s rental income increased 2% to $1.84 billion in 2021.
“While we cannot predict the end of the pandemic, we are cautiously optimistic about the near-term performance of the tourism and hospitality sectors. Our investments in the Courtyard by Marriott Kingston and Chukka Caribbean are well positioned to take advantage of any economic recovery that may arise,” Banks added of his hospitality investments which recorded a combined loss of $206.62 million.
Total assets rose 8% to $67.77 billion, largely off the back of its investment in associated companies worth $38 billion. Total liabilities increased 3% to $15.48 billion, while shareholders’ equity closed at $51.96 billion.
Besides increasing its share price by 7% to $68.88 with a market capitalization of $73.44 billion, PanJam will reward shareholders with a second special dividend on April 29. This payment amounts to $373.16 million and will be paid to registered shareholders beginning in April. 14 while an interim dividend of $0.285 will be paid on March 31 to shareholders of record as of March 16. This payment totals $303.86 million and is 171% higher than the $0.105 paid last year.