The Cayman Islands is home to billions of dollars’ worth of mergers and acquisitions in a given year, but few have the potential to impact the local community as much as the impending sale of Cayman National Corporation Ltd. to the Republic Bank Trinidad and Tobago (Barbados) Ltd.
Much has transpired in the roughly four months since the potential acquisition was announced, including contentious shareholder meetings, public clashes between politicians, major personnel changes taking place at Cayman National, and the local bank’s stock price doubling throughout all of this.
In early August, the Republic Bank announced a “possible partial offer” to purchase Cayman National shares for US$6.25 apiece – a US$3 premium over what they were trading at the time.
At the time, Cayman National stressed that nothing definitive had been agreed to, and the bank advised shareholders to “TAKE NO ACTION in relation to the Possible Offer until further announcement is made and formal documentation is distributed.”
Nevertheless, the price of Cayman National stock almost immediately skyrocketed, and was trading at nearly US$5 by the end of August, with shareholders likely anticipating the Republic Bank’s offer.