(CMR) The board of directors for Cayman National Corporation Ltd. have recommended that it's shareholders accept the offer from the Republic Bank Trinidad and Tobago (Barbados) Ltd.
In whirlwind of events this week it was announced that:
“The Board believes that the Partial Offer is a good opportunity for Cayman National shareholders to realise the value of their investment in Cayman National,”
The board of directors stated that in making the decision, it carefully considered the price per share Republic National is offering investors (US$6.25 per share), the positive commitments Republic Bank made to the community, and the fact that Cayman National has the potential to benefit by being a part of a larger group of companies.
The shares are at an all time premium at US$5.50 as of Tuesday and the offer price is US$6.25.
There was also mention during the meeting and in the CSX announcement that if the shareholders do not sell there's a possibility of a hostile takeover. It stated:
“There may be adverse consequences associated with not accepting the Partial Offer”.
It was further explained that the bank could go to individual shareholders and acquire the shares separately.