GRACE, KENNEDY & Co. is to hold a 67 per cent interest in the deal announced on Thursday that saw the merger of Hardware & Lumber with Rapid & Sheffield, according to Wain Iton, general manager of the Jamaica Stock Exchange.
The new entity will be listed on the JSE and the shares will be initially valued at $9.50. At the end of trading on Friday, Hardware & Lumber was valued at $6.20 a share. This now puts a valuation on Harware & Lumber of about $380 million.
Last week, both Douglas Orane, chairmain and chief executive officer of Grace, Kennedy & Co., and Maurice Facey, chairman of Pan Jamaican Investment Trust, issued a statement saying they had reached an agreement, subject to due diligence, on the merger of Hardware & Lumber and its subsidiaries, including H&L True Value and H&L Agri & Marine Company, with Rapid & Sheffield and Agro-Grace.
"Due diligence means that during the weeks to come, we will be examining the business in more detail to confirm our initial assessment of their operation and financial statements," the statement said.
Speaking with The Gleaner yesterday, Mr. Iton said Pan Jam would hold a 25 per cent interest and that Grace, Kennedy, by September this year, would have to make a mandatory offer to acquire the remaining shares. He said the deal would be conducted by share swaps.
The merged company will be the largest wholesaler and retailer of hardware and home improvements goods as well as agricultural products in Jamaica.
