Republic Bank Trinidad and Tobago (Barbados) Ltd. has received acceptances to buy 87.39 percent of the shares of local bank Cayman National Corporation Ltd., according to an announcement Thursday on the Cayman Islands Stock Exchange.
Republic Bank is still only initially acquiring 74.99 percent of Cayman National, and will determine how much stock it buys from each shareholder based on a formula contained in its offer circular. Based on that formula, Republic Bank will buy about 85 percent of the stock from each individual shareholder who accepted the offer – so if a Cayman National stockholder agreed to sell 1,000 shares, the Republic Bank will actually buy about 850 at this point.
The Thursday announcement also stated that the Republic Bank has received approval from the Dubai Financial Services Authority to acquire Cayman National.
The acquisition required the approval of Dubai authorities because Cayman National has a branch there, Cayman National (Dubai) Ltd. That entity is licensed to arrange credit or deals in investments, advise on financial products or credit, and carry on authorized financial services with or for retail clients.
Before Cayman National’s sale to the Republic Bank is finalized, the deal still needs the approvals of the Central Bank of Barbados, the Central Bank of Trinidad and Tobago, the Cayman Islands Monetary Authority, the Cayman Islands government, and the Isle of Man Financial Services Authority.
Cayman National CEO Stuart Dack said at an October shareholders meeting that he expected to have decisions from all regulators by the end of the year.
Republic Bank originally made its offer in September to purchase Cayman National shares for US$6.25 apiece, which was a US$3.25 premium over what the stock was trading at before the potential acquisition was announced.
The Republic Bank’s offer to purchase shares is still open through Jan. 4.
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. Another extension, to Jan. 4, was announced on Thursday.
Republic Bank Trinidad and Tobago (Barbados) Ltd. was incorporated in Barbados in 1999, and is 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.
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