(CMR) Republic Bank Trinidad and Tobago (Barbados) Limited (RBTTBL) is making a bid to acquire a majority ownership of the only locally owned bank, Cayman National Corporation Ltd. (Cayman National).
Whilst this is only a preliminary step in any possible acquisition many are already expressing concern that this could have far reaching implications for locals with the elimination of the only available Caymanian creditor – a major player in the banking indusry here.
Titled Project Blue the announcement posted on The Cayman Islands Stock Exchange website the three page document indicates that the foreign bank are interested in acquiring anywhere from a minimum of 51% up to 74.99% of by the issued shares “by way of a tender offer to Cayman National shareholders.
The release further states that the Board of Cayman National have received “an unsolicited proposal” to acquire the ordinary shares offering essentially double the per share price of US$3.00 at closing on August 3, 2018.
They further indicate that at this stage there's no possible offer remains subject to various conditions including the completion of due diligence, approval by the boards, government regulatory approval etc.
“The Board of Cayman National has determined that it is in the interests of Cayman National's shareholders to engage with RBTTBL in connection with the Possible Offer, and the directors are considering their response to the Possible Offer. If a Definitive Agreement is entered into, further announcement will be made and an Offer Circular containing additional information on the Possible Offer and Definitive Agreement, Cayman National Directors' Circular pursuant to the Offer Circular and a Notice of Extraordinary General Meeting will be distributed to Cayman National shareholders. Cayman National shareholders are advised to TAKE NO ACTION in relation to the Possible Offer
until further announcement is made and formal documentation is distributed.”
This news comes as a bit of a surprised for a bank that prides itself in being the only fully owned local in the Cayman Islands. We understand that a staff meeting is scheduled for 4:30 pm today.
Deloitte is acing as independent financial advisor and Ogier is acting as legal advisor to CNB. Walkers will be acting for RBTTBL.
Republic Bank is a bank and financial service provider in Trinidad and Tobago and one of the largest in the Eastern Caribbean. It has branches in Grenada, Guyana, Barbados and offshore banking operations in Cayman (Republic Bank Trinidad & Tobago (Cayman) Limited). It was formerly a division of Barclays Bank in Trinidad and Tobago.
According ot the website, Republic Financial Holdings Limited (RFHL) has recorded a profit attributable to shareholders of $993.3 million for the nine-month period, ended June 30, 2018, representing an increase of $34.4 million or 3.6% over the corresponding period of the last financial year. Total assets stood at $69.6 billion as at June 30, 2018.
Read full release here.
This is a developing story and CMR will be updating our readers as more information becomes available.