Local bank Cayman National Corporation Ltd. announced Monday that it has received a “possible partial offer” from the Republic Bank Trinidad and Tobago (Barbados) Ltd. to buy between 51 percent and 74.99 percent of its issued shares by way of a tender offer to the national bank’s shareholders.

According to the announcement, the terms of the possible offer contemplate an indicative price of between US$6 to US$6.75 per Cayman National share, which represents a premium of between US$3 to US$3.75 per Cayman National share as compared to the closing price of US$3 per Cayman National share on Aug. 3 – this being the last trading date before the date of this announcement.

The announcement states that if a definitive agreement is entered into, then an offer circular containing further information, a Cayman National directors’ circular, and a general meeting notice will be distributed to Cayman National shareholders.

The announcement added that the possible offer remains subject to several conditions, including the completion of due diligence by the Republic Bank Trinidad and Tobago (Barbados) Ltd. and the final approval by the bank’s board of directors, as well as the execution of satisfactory definitive documentation customary for a transaction of this nature.

“Even if the Possible Offer is made to Cayman National shareholders, the consummation of the transaction pursuant to the terms of the Definitive Agreement shall be subject to further conditions including, without limitation, a 51% minimum acceptance level and receipt of necessary government, regulatory and shareholder approvals,” the announcement states, adding, “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.”

Cayman National CEO Stuart Dack told the Cayman Compass that he is limited in what he can say about the possible transaction at this point.

“The board of directors of Cayman National Corporation are taking the matter very seriously. We’re working very closely with our professional advisors, and we will be making further contact with our shareholders in due course,” said Mr. Dack. “As a public company, our central responsibility is to act in the best interests of our shareholders, but we’re also very conscious of the need to act in the best interest, as far as possible, of all our stakeholders.”

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