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 CEO Kadeen Mairs wrote to Access’s board of directors stating that Dolla “is interested in exploring a takeover to obtain 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 listed on the JSE two months ago on June 15.
In her letter to Access Financial, Dolla requested that both parties continue with “confidential exploratory discussions” and proposed that they enter into a non-disclosure agreement to cover possible discussions.
Mairs has given Access Financial until August 16 to respond to the expression of interest.
Dolla Financial last month received board approval to raise $1 billion in bonds, giving up all of the $25 million it raised through an initial public offering in May. The bond issue is likely to help Dolla Financial achieve its goal of opening three more local branches by the end of the year and setting up shop in a third Caribbean country.
The microlender operates nine branches in seven parishes and recently opened a branch in Portmore, St Catherine, where it plans to lend $100 million in six months.
Marcus James, CEO of Access Financial Services.
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 has been approved to offer microcredit services, such as lending or business advisory services to individuals and MSMEs.
The company said it will continue to ensure it meets all regulatory obligations to provide greater financial inclusion, improved customer service and greater disclosure to customers.
Access had a $2 billion bond offering last month to refinance debt and give itself more working capital.
