The Republic Bank Trinidad and Tobago (Barbados) Ltd.’s offer to purchase shares of the local bank Cayman National Corporation Ltd. was scheduled to expire on Monday, but has now been extended to Nov. 12, according to an announcement on the Cayman Islands Stock Exchange.
The announcement explains that the offer has been extended in order to accommodate a Nov. 7 Cayman National shareholders meeting, where a vote will be held to amend the bank’s articles of association to allow for a single entity to own more than 10 percent of the institution.
A similar vote was held on Oct. 9 to remove a provision that prevents more than 10 percent of Cayman National shares being issued to any entity. That amendment passed with roughly 80 percent of the voting shares in favor of removing the restriction.
However, there is another restriction in the articles stating that the bank’s directors shall decline to register any transfer of shares that result in an entity owning more than 10 percent of Cayman National.
That restriction also needs to be removed, but was not voted on at the Oct. 9 meeting due to “an administrative oversight,” according to a notice on the Cayman Islands Stock Exchange.
“We apologize for any convenience,” Cayman National stated in its notice, setting a date of Nov. 7 for the next meeting.
As of Oct. 15, the Republic Bank has received acceptances for at least a total of 22,934,246 ordinary shares of Cayman National, representing 54.15% of the local bank’s ordinary shares. Republic Bank is paying US$6.25 per share, which is a US$3.25 premium of what the stock was trading at before the offer was announced in early August – the stock was trading at US$5.50 as of Monday.
Republic Bank’s goal is to purchase up to 74.99 percent of Cayman National’s stock.
Republic Bank Trinidad and Tobago (Barbados) Ltd. was incorporated in Barbados in 1999, and is a part of Trinidad-based Republic Financial Holdings Ltd., which was originally called Colonial Bank when it was formed in 1837, according to the organization’s website.
Republic Financial Holdings Ltd. has more than $10 billion in assets, owns banks in Guyana, Grenada, Suriname, St. Lucia, and Ghana – as well as having a class B bank in Cayman, Republic Bank (Cayman) Limited – and has more than 4,000 employees in Trinidad alone, its website states.