As the Republic Bank Trinidad and Tobago (Barbados) Ltd. nears the finalization of its acquisition of Cayman National Corporation Ltd., the local bank stated on Monday that it has not received any official offers from other institutions to purchase Cayman National shares.
Cayman National’s statement came in response to a report from another media outlet that a “North American led syndicated group” has offered to purchase the local bank. The report speculated that the “new offer” could lead to a “bidding war” for Cayman National. However, the local bank clarified that it has not received any offers that are in compliance with the rules of the Cayman Islands Stock Exchange.
“As at the time of publishing this announcement, the only offer that has been received in accordance with the [Stock Exchange] Code is the offer from Republic Bank Trinidad and Tobago (Barbados) Limited,” Cayman National stated, adding, “The Board of CNC continues to recommend that shareholders accept the Republic Offer, in the absence of a superior proposal.”
Cayman National added that more than 75 percent of its shareholders have accepted Republic Bank’s offer to purchase their shares at US$6.25 apiece. The sale will be finalized once it has received regulatory and government approvals.
Republic Bank’s offer was originally scheduled to expire on Oct. 22, but has been extended multiple times as the two parties finalize the sale.
The most recent extension was announced by Republic Bank on Thursday, with the offer now set to expire on Dec. 7. Republic Bank explained that the extension was made because the regulatory approvals for the sale have not been received yet.
Before Republic Bank announced its offer in early August, Cayman National shares were trading at US$3. The price of Cayman National stock was US$6 as of Friday.
Republic Bank Trinidad and Tobago (Barbados) Ltd. was incorporated in Barbados in 1999, and is a part of the 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.