(CMR) The Republic Bank Trinidad and Tobago (Barbados) Limited (RBTTBL) takeover of Cayman National Bank (CNB) appears imminent as the parties enter into several agreements.
The updated announcement on the Cayman Islands Stock Exchange website was updated yesterday and indicated that the parties have now entered into an Implementation Agreement and Side Letter Agreement.
“The Implementation Agreement contains customary representations, warranties, covenants, protection mechanisms, termination rights and mutual break fees for a transaction of this nature.”
The parties have agreed that should the sale proceed RFHL will
(i) a banking presence in all three of the Cayman Islands,
(ii) the name and branding of Cayman National and its Cayman Islands subsidiaries,
(iii) a majority of the workforce and management of Cayman National and its Cayman Islands subsidiaries,
(iv) a primary listing on the Cayman Islands Stock Exchange,
(v) all operational subsidiaries of CNC in existence,
(vi) a dividend policy that protects minority shareholders,
(vii) transparent and reasonable management fees,
(viii) timely local decision-making for credit decisions, and
(ix) regulatory capital in Cayman Islands dollars, within the Cayman Islands.
The Board of Cayman National gives notice of an Extraordinary General Meeting to be held at Grand Cayman Marriott Beach Resort at 4:00 pm on 9 October 2018
The Extraordinary General Meeting is a distinctly separate meeting to approve an amendment to the Articles of Association of Cayman National in order to permit the acquisition by RBTTBL of the tendered shares.
In order to accept or reject, in whole or in part, the Partial Offer, each shareholder will be requested to complete and submit the Form of Acceptance which accompanies the Offer Circular.
We understand the bank has been receiving a number of calls from customers who have not yet received any official notices. Many fear the bank will have a run on assets as Caymanians seek to protest the acquisition. One banker already commented:
“In listening to my father the reason CNB was started it here all those years ago was that no foreign bank could ever dictate to Caymanians concerning their money. It now defeats the purpose of establishing it all those years ago.
I done transferred our lil nest egg to be honest. Just a small working balance left there now.”