Proven selling portion of Access Financial stake

Private equity firm Proven Investments Limited plans to sell up to three-quarters of its holdings in Access Financial Services Limited, a micro lender with holdings in Jamaica and the United States.

That base transaction would generate $2.19 billion, but with the option to upsize the offer is valued $3.29 billion. NCB Capital Markets will act as the lead broker and underwriter to the offer, which opens on September 26 and closes October 11.

Proven intends to use the capital raised to pursue expansion and acquisition opportunities, according to the prospectus.

Proven Investments owns 49.7 per cent of Access, or 136.5 million of the 274.5 million shares in issue. It initially plans to sell 68.6 million units as a block at $32, but if Proven chooses to upsize the offer it would result in the sale of three-quarters of its Access holding, or 102.9 million shares. 

Proven acquired the stake in Access from Mayberry Investments Limited in December 2014 for $1.2 billion. Its holdings, at the $32 per share offer, are now worth $4.36 billion. However, the Access Financial stock traded at $40 on Friday, a one-year low, which puts the micro lender’s market value at $11 billion and Proven’s holdings at $5.4 billion. The Access stock has traded as high as $53 in the past year.

Proven intends to retain at least 24.7 per cent of its holdings in the microfinancing firm.

steven.jackson@gleanerjm.com