MFS Acquisition Completes Acquisition of SSLVC

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Dino Hinds, director of Micro-Financing Solutions, led the takeover of SSL Venture Capital and is now looking to rebrand the company and revamp it for growth.

MFS Acquisition Limited has completed the acquisition of SSL Venture Capital Limited (SSLVC) and plans to change the name of the company at the next Extraordinary General Meeting (EGM) to be held on June 13.

MFS Acquisition was established by Micro-Financing Solutions Limited (MFSL) as a special purpose vehicle to complete the acquisition of Junior Market listed on the Jamaica Stock Exchange (JSE). MFS Acquisition now owns a 79.08% or 316,329,891 share interest in SSLVC as of May 25. This makes SSLVC a subsidiary of MFS Acquisition. MFS Acquisition paid $29.99 million for the stake at $0.0948 per share. Stocks and Securities Limited (SSL) withdrew its support for SSLVC at the end of March.

“We are delighted with this acquisition which expands our possibilities. We will now assess our next steps, which will certainly include the acquisition of entities that have the potential to increase shareholder value,” MFSL Director Dino Hinds said in a statement following the completion of the acquisition.

MFSL is a private company that offers short-term financing solutions to individuals and small businesses, as well as remittances, bill payments and cambio transactions. It started in 2012 and took stakes in several other entities with the acquisition of SSLVC to strengthen its position as a private equity player.

Following the acquisition of SSLVC by MFS Acquisition, Zachary Harding, John Jackson, Christine Birch and Brent Ciurlino resigned as directors on May 26 at the board meeting. Jeffrey Cobham resigned as president of the company on the same date. Harding resigned as managing director of SSLVC, while Anthony Dunn also resigned as chief operating officer. Both will retain their respective roles within the SSL group.

Clide Leopold Nesbeth was elected as the new Chairman of the Board. Hinds, Robert Barnes, Christine E Johnson Spence and Anika N Jengelley were appointed new board directors at the same meeting. All directors are professionals in marketing and communications, law, banking and finance, investment, commercial banking and management.

The virtual EGM will be held at the current Barbican Business Center headquarters to change the company’s name to MFS Capital Partners Limited, which has been reserved at the Companies Office of Jamaica. SSLVC’s current fiscal year ends June 30.

This is the second takeover of the surviving entity known as SSLVC. SSL executed a reverse takeover in July 2018 to save the failing music group known as C2W Music Limited. SSL had paid between $0.40 and $0.60 per share for the 215,978,588 shares of the previous major shareholders. SSLVC was created to invest in budding businesses, with the intention of making gains through the company’s successful listing on the JSE or selling its stake to someone else. After investing in three companies and taking majority control, it sold its stake in Blue Dot Data Intelligence at a loss while the other two companies folded and were liquidated.

SSLVC’s tax rebate expired Sunday after listing May 25, 2012. The stock is currently trading at $1.80, valuing it at $719.55 million. This came after news of the acquisition went public in January, which pushed the stock above its listing price of $1.29, where it had struggled to stay on top for years. SSLVC’s total assets at the end of March were $20.1 million with total liabilities of $73.1 million. It recorded a nine-month net profit attributable to shareholders of $11.32 million due to the write-off of intercompany payable balances.

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