Camilo Thame, Business Writer

John Hildebrandt (right), executive vice-president of PriceSmart, and Charlie Hyde (left), country manager for Jamaica, taking media personnel on a tour on March 13, 2003, of PriceSmart Jamaica's complex at 111 Red Hills Road, St. Andrew, ahead of the store's month-end opening. - File

Three and a half years after partnering with the Myers family, KFC franchise holders, to bring membership shopping to Jamaica, PriceSmart has bought the remaining stake in the local franchise for US$2.8 million ($182 million) to take full control of the Kingston-based discount centre.

Last November, PriceSmart, which in the past two years has been buying up minority interests in other operations in the region while disposing of its own stake in four stores located in the Philippines, secured the agreement with "two of three minority shareholders of the Jamaican subsidiary for US$1.73 million."

The initial 25 per cent acquisition, which pushed up the San Diego-based firm shareholdings to 92.5 per cent, was acquired from Big Box Sales Limited (15 per cent) and Chancellor Holdings Limited (10 per cent).

Lead investor

It is not clear who were the owners of the two entities, but at the start of the Red Hills Road project, the Myers family was known to be the lead investor after PriceSmart.

Subsequently, PriceSmart acquired the remaining 7.5 per cent for US$700 million from South American firm PSC, SA.

In a notification to U.S. regulator, the Securities Exchange Com- mission (SEC), PriceSmart said: "During the second quarter (three months to February 28, 2006), the company acquired the remaining minority interest (7.5 per cent) in PriceSmart Jamaica, increasing its ownership to 100 per cent."

It added that the purchase of the 32.5 per cent minority interest in the Jamaican subsidiary was for US$2.4 million ($156 million).

In addition to the US$2.4 million cash, a US$413,000 note receivable was forgiven.