Radio Jamaica (RJR) and The Gleaner Company are merging their media operations, the firms announced on Wednesday.
It was reported that the transaction, which is to be pursued through a court approved scheme of amalgamation, will be a stock for stock deal where Radio Jamaica Limited will issue and exchange 1.2 billion shares on a one for one basis to shareholders of The Gleaner Company Limited for 100 per cent of a newly formed subsidiary Gleaner Company (Media) Limited (GCML) which will hold the assets of the media entities of the Gleaner Company.
Simultaneous with the transaction, the remaining publicly traded Gleaner Company Limited, with non-media assets comprising mainly real estate and other investments will be renamed, according to the report.
It will result in the shareholders of the Gleaner Company Limited owning 50 per cent of Radio Jamaica Limited’s common stock and existing RJR shareholders owning the remaining 50 per cent of the combined business.
"This is the most exciting development for media in over 50 years," said Gary Allen, Managing Director, Radio Jamaica Limited.
"The companies have been the leaders in all of the industry’s most important innovations in media over the last 180 years and this merger will accelerate the pace of that innovation to deliver superior products and services within the highly competitive and dynamic marketplace in which we operate”, he added.
Christopher Barnes, Managing Director of Gleaner Company Limited, said "This combination creates a stronger company that delivers maximum value for our shareholders, greater career opportunities for our employees and superior experience for our customers."
The expanded media group, which will be renamed once the transaction is complete, is to be led by Chief Executive Officer, Gary Allen, with Christopher Barnes as Chief Operating Officer. J.A. Lester Spaulding is to be Chairman with Oliver Clarke as Deputy Chairman.