Supreme Ventures Limited (SVL) has acquired a stake in Dolla Financial Services Limited (DFSL).
The gaming company acquired 375 million units to gain 15 per cent of total shareholding at 2.5 billion units.
SVL’s decision to buy into the micro-lender was premised on the fact that DFSL is “one of the fastest growing microfinance businesses and [has] one of the best and brightest management teams,” Gary Peart, chairman of SVL told Loop News.
In its filing to the Jamaica Stock Exchange, SVL said the move “continues to be in alignment with [its] growth strategy, which has expanded beyond the gaming market and has been making headway into other growth industries with significant potential to meet the ever-growing needs of an eclectic consumer base”.
Peart declined to comment on the cost of the acquisition.
Since the transaction, DFSL has further reported that Xesus Johnston, the current CEO of Supreme Ventures Gaming Limited, and Andrea Whittaker, the current the Chief Operating Officer of Mayberry Investments Limited, have been invited to join DFSL Board of Directors “…subject to the approval of the Bank of Jamaica by the Microcredit Act of Jamaica”.
DFSL also recently announced plans to expand its operations into St Lucia and Barbados.
The recent success and growth of Dolla Financial Services have been notable, with its loan portfolio net of bad loans reaching $2.3 billion for the period ending March 31, 2023. This represents a significant increase of $1.4 billion or 161 per cent compared to the same period in 2022.
The company’s financial performance has been bolstered by increased resources from an initial public offering and debt raise.
Quizzed on SVL’s plans for its newly acquired shareholding Peart said only that the company plans to “extract strategic efficiencies” but has no plans to acquire any additional shares in DFSL at this time”.
SVL has previously invested in the microfinancing sector through wholly owned subsidiary McKayla Financial Services, which obtained a Microcredit Licence from the Bank of Jamaica this week. Indeed, the Dolla acquisition deepens its presence in the microlending market amid its push towards diversification.
CEO of Dolla Financial, Kadeen Mairs did not respond to requests for a comment.
In a significant move, FirstRock Private Equity Limited sold 600 million shares, representing 24 per cent of its stake in Dolla on Monday, July 24.
This strategic sale reduced its ownership from 60 per cent to 36 per cent, while maintaining its position as the largest shareholder.
Notably, Mairs, the founder of Dolla, through his company Dequity Capital, becomes the second-largest owner, and Supreme Ventures now holds the third position in the top shareholders’ list.
At the time of the release, Dolla’s market capitalisation stood at $5.33 billion. SVL, also listed on the stock exchange, holds a market capitalization of over $73 billion.
Dolla is now valued at $7.2 billion in market cap.