Scotiabank Jamaica to Go Private While Capping Large Cheques at J$1 Million

Kingston, Jamaica, June 23, 2026 — Scotiabank is making some profound, arguably aggressive, strategic moves in Jamaica this summer. First, the bank is unilaterally capping all cheque transactions at J$1 million, pushing the island towards a more digital-first economy. Second, and perhaps even more significantly, its majority shareholder, Scotiabank Caribbean Holdings Limited (SCHL), has announced a definitive plan to take Scotia Group Jamaica Limited (SGJL) private, offering a substantial premium to minority shareholders. These two actions, taken together, paint a picture of a financial giant doubling down on a leaner, more agile, and deeply integrated presence in the Caribbean. Let’s address the cheque cap first, as it affects everyday transactions. Effective September 1, 2026, Scotiabank will no longer accept or issue cheques for amounts equal to or greater than one million Jamaican dollars. This isn’t a unilateral decision in isolation. It’s part of a broader, joint initiative with the Jamaica Bankers Association to dramatically reduce cheque usage across the island over the next two years. The push is explicit: embrace Real Time Gross Settlement (RTGS), available online and in branches, for large-value transfers. This move aims to enhance security, improve efficiency, and accelerate Jamaica’s ongoing digital transformation—a necessary, if sometimes inconvenient, step for any modern economy. Scotia Group Jamaica Limited Privatization at a Glance MetricDetailsTarget CompanyScotia Group Jamaica Limited (SGJL)AcquirerScotiabank Caribbean Holdings Limited (SCHL)Current SCHL Ownership71.78% of SGJL sharesRepurchase PriceJMD$61.50 cash per minority sharePremium Offered~13% over 30-day volume-weighted average trading price (June 11, 2026)PurposeEnhance capital/operational efficiency, Scotiabank agility, deepen investmentExpected ClosingFourth calendar quarter of 2026 (subject to approvals) Now, to the privatization. SCHL, which already owns 71.78% of SGJL, is offering JMD$61.50 in cash per share to buy out the remaining minority shareholders. This represents a solid premium of approximately 13% over SGJL’s recent trading average on the Jamaica Stock Exchange. This isn’t a retreat from Jamaica; it’s a profound reinvestment. Francisco Aristeguieta, Group Head International and Global Transaction Banking at Scotiabank, was explicit: “With a legacy of nearly 137 years in Jamaica, this Transaction reflects our ongoing commitment to our operations in the country. We are proud to deepen our investment and reinforce our support for the continued advancement and development of the Jamaican economy.” This move aims to enhance capital and operational efficiency, giving Scotiabank greater agility to respond to market opportunities without the complexities of public listing regulations for its subsidiary. Jabar Singh, Scotiabank’s President for the Dominican Republic and the Caribbean, reiterated that “Jamaica and the Caribbean remain central to Scotiabank’s global strategy.” Audrey Tugwell Henry, President & CEO of SGJL, added that the transaction is intended to “enable us to focus more sharply on long-term value creation and core business growth.” The board of directors of SGJL appointed an Independent Committee, which, after receiving independent financial and legal advice (including a fairness opinion from Ernst & Young Services Limited), unanimously recommended the transaction to minority shareholders. This process aims to ensure the offer is indeed fair from a financial standpoint. The transaction requires approval from a majority of minority shareholders, at least 75% in value of those shareholders, and ultimately the Supreme Court of Jamaica. SGJL expects to hold these court-ordered meetings in the coming months, with a target closing in the fourth quarter of 2026. For minority shareholders, the offer provides a liquid exit at a premium. For Scotiabank, it’s about consolidating its operational control and streamlining its strategic direction in a key Caribbean market that it sees as central to its global ambitions. This dual strategy of pushing digital adoption through the cheque cap and consolidating ownership through privatization signals a clear intent: Scotiabank is positioning itself for a future in Jamaica where its operations are more unified, digitally advanced, and strategically unencumbered. While change can always bring uncertainty, Scotiabank’s messaging is clear that this represents a deepened, not diminished, commitment to the island. More details will be made available in the Scheme Booklet for the upcoming shareholder meetings.