Durrant Pate/Contributor

First Rock Private Equity has offloaded a large chunk of its shareholding in fast-rising micro-lender, Dolla Financial Services Limited.

Our Today can confirm that First Rock Private Equity, which is the privately operated equity arm of the First Rock Group, has sold 15 per cent of its equity to Jamaican-based regional gaming operator, Supreme Ventures Limited (SVL), and a further 9.0 per cent  to Mayberry Investments, which, incidentally, is the second largest shareholder in SVL with 15.31 per cent equity in the betting company, representing 404-million shares.

In total, First Rock has sold 24 per cent of its interest in Dolla. When the sale of its interest in Dolla is finalised to SVL and Mayberry, First Rock Private Equity shareholding in Dolla will be depleted to 36 per cent.

No sale price has been disclosed but Our Today investigations revealed that the equity was bought at a price just under the current market value of J$2 per share. With Dolla having some 2.6 billion shares outstanding, which means 15 per cent equity would amount to 375 million shares and 9.0 per cent equating to 225 million shares.

First Rock to pocket at least J$1.1 billion

Based on this computation, First Rock would pocket at least J$1.1 billion for its 24 per cent stake in Dolla. First Rock Private Equity purchased 75 per cent of Dolla for US$1.1 million in 2021 from affiliated company, First Rock Capital Holdings.

Since then, the investment has seen a nearly 10-fold increase on its investment with the Chris Yeung-led First Rock Private Equity already recouping its initial investment in the Kadeen Mairs-led Dolla Financial.

SVL has confirmed its acquisition of the 15 per cent Dolla Financial equity from First Rock Private Equity, saying “this move continues to be in alignment with SVL’s 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”.

Speaking with Our Today, Yeung said: “We welcome the partnership with SVL, which will add further growth to the company and ensure that our vision to be the leading micro-lending company in the region is realised in a more expeditious way. SVL brings an abundance of knowledge, experience and capital to the forefront.”

He disclosed that as part of the deal, SVL has committed to providing Dolla with J$5 billion in capital over the next two years.

Source: https://our.today/first-rock-offloads-large-stake-in-dolla-financial-to-svl-mayberry/