Dolla makes bid to acquire Access Loop Jamaica

The content originally appeared on: Jamaica News Loop News
Loop Business

52 minutes ago – Updated

In a letter, dated August 11, 2022, Dolla’s CEO Kadeen Mairs wrote to Access’ board of directors stating that Dolla is “interested in exploring a take-over to acquire full control of Access”.

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Microfinance company Dolla Financial Services Limited has launched a takeover bid for rival firm Access Financial Services Limited.

In a letter, dated August 11, 2022, Dolla’s CEO Kadeen Mairs wrote to Access’ board of directors stating that Dolla is “interested in exploring a take-over to acquire full control of Access”.

Access, led by Marcus James, was the first company to list on the Junior Market of the Jamaica Stock Exchange in 2009. Whereas, Dolla was listed on JSE two months ago on June 15.

In its letter to Access Financial, Dolla requested that both parties proceed to “confidential exploratory discussions” and proposed that they enter a non-disclosure agreement to cover the likely discussions.

Mairs has given Access Financial until August 16 to respond to its expression of interest.

Dolla Financial, last month, received board approval to raise $1 billion in bonds, having unlent all of the $25 million it raised via an initial public offer in May. The bond issue will likely help Dolla Financial achieve its goal to open three more local branches by year-end and set up shop in a third Caribbean country.

The microlender operates nine branches across seven parishes and recently opened a branch in Portmore, St Catherine, where it plans to unlend $100 million in six months.

Marcus James, CEO of Access Financial Service.

Meanwhile, Access recently received approval from the Bank of Jamaica (BOJ) to operate as a microfinance institution (MFI).

Access said the development means the company is approved to provide microcredit services, such as granting loans or business advisory services to individuals and MSMEs.

The company said it would continue to ensure that it meets all regulatory obligations to provide greater financial inclusion, improved customer service, and greater disclosure to customers.

Access had a $2 billion bond offer last month to refinance debt and give itself more working capital.

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