The move aims to streamline operations
Scotiabank has proposed a full buyout of its Jamaican subsidiary, Scotia Group Jamaica Limited (SGJL), in a cash transaction valued at approximately $500 million, the Toronto-based bank announced last week.
Scotiabank Caribbean Holdings Limited is seeking to take the Jamaican banking group private through a proposed buyout of minority shareholders at $61.50 per share. Scotiabank Caribbean Holdings Limited already owns 71.78% of the company.
The proposed deal would be conducted through Scotiabank’s Caribbean holding arm. SGJL has entered into a definitive arrangement agreement with Scotiabank Caribbean Holdings Limited, its majority shareholder, under which all issued and outstanding SGJL shares not currently owned by SCHL would be repurchased, subject to approval by minority shareholders.
The transaction was endorsed by an independent committee of SGJL's board, with conflicted directors recusing themselves, according to a news release.
The transaction will be carried out through a court-approved Scheme of Arrangement under the Companies Act, 2004 in Jamaica, and requires approval from the Supreme Court of Jamaica.
Shareholders will have the option of receiving payment in Jamaican dollars or US dollars, with the US-dollar payment based on the Bank of Jamaica's weighted average selling rate three days before settlement.
If approved, the transaction is expected to close in the fourth quarter of 2026, with SGJL shares then to be de-listed from the Jamaica Stock Exchange. Scotiabank said the estimated capital impact at closing is approximately five basis points on its Common Equity Tier 1 (CET1) ratio.
SGJL had assets of $774 billion as at October 31, 2025. Scotiabank has operated in Jamaica since 1889 and currently has approximately 1,800 employees and 28 branches locally.
Restructuring of international footprint
The Jamaica buyout follows a broader restructuring of Scotiabank’s international footprint. On Dec. 1, 2025, the bank completed the transfer of its banking operations in Colombia, Costa Rica and Panama to Davivienda Group in exchange for an approximately 20% ownership stake. The divestitures contributed to a shift in Scotiabank’s earnings profile.
In Q1 2026, North America accounted for 82% of earnings, while the Caribbean contributed 11%. Management described its approach as a “value over volume” strategy, with risk-adjusted margins expanding 20 basis points year-over-year.
Scotiabank's international banking segment generated adjusted earnings of nearly $2.9 billion in 2024, up 11% year-over-year, as the bank redirected focus toward Caribbean markets following its Latin American pullback.
The SGJL deal is one of two acquisitions Scotiabank announced in quick succession. In May, the bank entered into a definitive agreement to acquire Maple Financial Holdings, Inc., parent company to MapleMark Bank, a US commercial bank with operations primarily in Dallas, Texas.
SGJL had assets of $774 billion as of Oct. 31, 2025. Scotiabank has operated in Jamaica since 1889 and currently employs approximately 1,800 people across 28 branches in the country.
Scotiabank held approximately $1.5 trillion in assets as of April 30, 2026.
