(CNS): The announcement this week that a regional bank has made an unsolicited potential offer to buy up a ruling share of Cayman National Bank has spawned a local backlash, with people taking to social media to voice their concerns. A petition has now been started to urge the bank not to sell. More than 70 commenters on CNS were quick to express their opinions on the announcement and many of them appeared to feel strongly about retaining local control of the bank, which has been operating here for well over 40 years.
The petition calls on the majority shareholders, board of directors and management not to accept the offer from the parent company of the Republic Bank Trinidad and Tobago, which is based in Barbados. The petitioners threaten that customers will move their assets as a means of protest if the sale goes ahead.
The offer was described as being in the “embryonic stage” by the potential buyers, who have suggested that shareholders could see an increase of more than three dollars on the current share price. The decision, however, will be in the hands of shareholders. Once a formal offer has been made, they will meet and vote on whether or not to accept it once all of the regulatory and other requirements are met.
But even if the offer becomes a reality, there is no certainty that, regardless of any increase in the value of shares, the shareholders will all agree. CNS understands that the majority of the shareholders are Caymanian and they may feel as strongly as its customers about retaining the institution in local hands.
CNS reached out to the bank’s president, Stuart Dack, who told us that he was, under the law and rules of the stock market, very limited in the things he could say about the potential offer. He pointed out that no firm offer has been made and the process was in the very early stages. Dack urged people to read the full announcement made earlier this week and posted on the CNB website.