Barita Investments Limited (BIL) and Cornerstone United Holdings Jamaica Limited (CUHJ) have completed a transformative vote that will see the majority ownership of both companies and Cornerstone Trust & Merchant Bank Limited (CTMB) moved under Barita Financial Group Limited (BFGL). The resolution was overwhelmingly approved by shareholders at meetings held on Monday at the S Hotel Kingston, with 81.87% of Barita’s shares and over 95% of CUHJ’s shares in favor of the scheme.
Barita Financial Group, which is a subsidiary of Cornerstone Financial Holdings Limited (CFHL), is awaiting a financial holding company (FHC) license from the Bank of Jamaica (BOJ) to operate as a key player in Jamaica’s financial landscape. Currently, CFHL owns 75.68% of Barita Investments, and under the new arrangement, BFGL will hold both CTMB and a majority share of Barita, consolidating its influence in the Jamaican financial market.
The restructuring is set to bring improved operational efficiencies, governance, and customer experience. As part of the agreement, CUHJ’s assets and liabilities will be assumed by CFHL, and CUHJ will be dissolved, marking the beginning of a new chapter for the group.
Despite the overwhelmingly positive vote, a few questions remained from shareholders. Some, like Bruce Levy, representing Sagicor Select Funds Limited, inquired about potential meetings in Barbados to approve the restructuring process further. Mark Myers, chairman of both CUHJ and Barita, clarified that while it wasn’t mandatory, such a meeting is scheduled before the March 18 hearing.
Additionally, concerns arose about the future of Barita Investments, with some shareholders asking about the potential delisting of the company and the listing of Barita Financial Group. Legal experts, including Malindo Wallace, clarified that this idea would not be part of the current scheme, but rather a potential future event.
At the shareholder meeting, Ramon Small Ferguson, CEO of Barita Investments, discussed plans for CTMB’s transformation into a digital bank. He emphasized the merchant bank’s efforts to leverage technology and move toward providing an innovative suite of services, positioning itself at the forefront of Jamaica’s financial industry. Similarly, Dane Broadber, CEO-designate of BFGL, spoke about aspirations to eventually secure a commercial banking license for CTMB.
In financial terms, CTMB posted a modest growth in revenue, though rising expenses dampened overall profitability. Despite this, the move to expand its digital footprint is seen as a strategic step towards long-term sustainability.
As Cornerstone looks to strengthen its position, it is also in discussions to acquire a majority stake in Clarien Group Limited, marking another significant expansion for the financial group. The restructuring within Cornerstone’s companies is expected to enhance Jamaica’s financial services sector, aligning with the national growth agenda.
This merger sets the stage for significant changes in the Jamaican financial landscape, with both Barita and Cornerstone poised for further growth and transformation in the coming years.
