People who sold their shares in Cayman National Corporation Ltd. to the Republic Bank Trinidad and Tobago (Barbados) Ltd. can pick up their payments on Wednesday, March 13, some six months after the Republic Bank opened its offer.
The Republic Bank stated on Monday that its offer for Cayman National shares is now closed, and that it received acceptances to buy more than 90 percent of Cayman National’s shares. Republic Bank also stated last week that it has received all the necessary regulatory approvals, making the acquisition all but complete.
“We are delighted that Cayman National will now be part of the extended Republic family whilst still retaining our own unique identity. We will continue to provide our local touch, with the mainly Caymanian team providing high levels of services throughout all three of our Islands,” the Republic Bank stated.
“As previously announced, lending decisions will continue to be made in the Cayman Islands, and the majority of the board will continue to be comprised of Caymanian directors, but we will now be backed by the resources of a global financial player.”
The Trinidad-headquartered bank stated that it will only initially acquire 74.989 percent of Cayman National. Republic Bank’s original target was to buy between 51 and 74.99 percent of the once local bank.
Because Republic Bank is purchasing less stock than the shares that accepted its offer, it will determine how much stock it buys from each shareholder using 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 74.989-percent ownership being purchased by the Republic Bank represents 31,755,842 shares, making the transaction a roughly US$198,474,012 acquisition.
Republic Bank said on Monday that shareholders who sold their stock may pick up their payments from 12 p.m. on Wednesday at Cayman National Securities Ltd., which is located at suite 6201 of 62 Forum Lane in Camana Bay.
“Thereafter, cheques will be available for collection at the same address during regular business hours. Currently valid government-issued photo identification will be required for collection,” Republic Bank stated. “Shareholders resident outside of the Cayman Islands and entitled to consideration under the Partial Offer will receive funds by wire transfer initiated on March 13 2019.”
The Republic Bank opened its offer for Cayman National stock last September, offering shareholders US$6.25 per share – a US$3.25 premium over what the shares were trading at before the offer was announced.
Cayman National shares were trading at US$6.20 as of Monday.