FirstCaribbean International Bank Ltd has entered into an agreement with its majority shareholder CIBC Investments (Cayman) Ltd, to acquire all of the issued and outstanding shares in CIBC Bank and Trust Company (Cayman) Ltd and CIBC Trust Company (Bahamas) Ltd.
The two acquired entities provide trust and fund administration services in the Caribbean to private wealth management clients and institutional investors and form part of FirstCaribbean’s growth strategy in the wealth segment.
“These businesses are a wonderful addition to the FirstCaribbean group,” commented FirstCaribbean’s CEO Rik Parkhill. “They are geographically complementary, they possess strong complementary balance sheets, solid and experienced management teams and their operations will integrate seamlessly with FirstCaribbean yielding cost and revenue synergiesm,” said Mr. Parkhill, who replaced John Orr as CEO of FirstCaribbean on 12 September. The transaction, for a purchase price of US$76.8 million, effectively transfers direct ownership of two of CIBC’s Caribbean wealth management firms to its regional affiliate FirstCaribbean in exchange for a larger stake in that entity.
FirstCaribbean will issue 51,917,808 common shares in its capital as payment for the Cayman and Bahamas trust companies. CIBC Investments (Cayman) Ltd will at the conclusion of the transaction own 1,445,725,257 or 91.67 per cent (91.39 per cent prior to the transaction) of the shares of FirstCaribbean.
“It is great to become part of the FirstCaribbean family,” commented Ben Gillooly, CEO of the acquired entities. “We will be able to leverage FirstCaribbean’s diverse footprint in the Caribbean Region to deliver our products and services to wealth and institutional customers.”
Chairman of FirstCaribbean Michael Mansoor added that the acquisition by FirstCaribbean at this time “speaks to the confidence we place in our wealth segment to leverage the expertise and product offerings of our parent Canadian Imperial Bank of Commerce and become the market leading wealth services provider in this region.”