Regional bank triggers offer for control of CNB
Cayman National
(CNS): The board of Cayman National Corporation, the parent company of Cayman National Bank, has confirmed that it is currently considering a possible takeover offer by a regional player based in Barbados. The Republic Bank Trinidad and Tobago (Barbados) Limited (RBTTBL), which is owned by Republic Financial Holdings Limited, has announced it is considering the potential acquisition of at least 51% and up to 74.99% of the shareholding in Cayman National. “The assessment of this potential acquisition opportunity is in the embryonic stage as a due diligence exercise is presently ongoing,” RFHL officials said.
The regional bank’s ‘potential offer’ to Cayman National shareholders, if it becomes a formal one, could be more than double the share price. RBTTBL, which does not currently hold any shares in the local bank, has floated an offer of between US$6 to US$6.75 per share, compared to the closing price at the time of the offer of US$3. RFHL said that no agreement has been entered into and the potential acquisition is subject to a number of other factors aside from CNB shareholder agreement, such as regulatory approvals, its own diligence exercise and board approval.
The offer was unsolicited and Cayman National said in a release posted on its website that there is no certainty that the possible offer will be made to shareholders, urging caution and telling them to take no action with their shares at this point. T,he bank said several conditions would still need to be met even after a formal offer is made.
However, according to the release, the “board has determined that it is in the interests of shareholders to engage with RBTTBL over the possible offer”, and that the directors are considering their response. “If a Definitive Agreement is entered into, further announcement will be made,” the bank said, which would include additional information on the offer and the proposed agreement. A general meeting would also be set for shareholders.
Cayman National was established in 1974 and is the largest financial services company based in the Cayman Islands. RBTTBL, which was created in 1999, is a licensed offshore international financial business and is a wholly-owned subsidiary of Republic Financial Holdings Limited. RBTTBL currently has wholly-owned subsidiary in the Cayman Islands, Republic Bank (Cayman Limited).
Category: Banking & money, Business
If the takeovers of Cable & Wireless (LIME/FLOW) and CIBC/Barclays (First Caribbean) are examples of how local companies will be run from Barbados or Trinidad, shareholders of Cayman National should vehemently reject this offer. Customer service and other products will surely go downhill if this takeover happens!
Hopefully national pride will prevail but in the end, money talks!
I whole heartedly agree with these sentiments.
Cable & Wireless Cayman was built by Caymanians back in the day providing the very foundations in terms of physical and STEM human capital infrastructure that now fuel many parts of the local economy. Then under pressure from vested interests who wanted a piece of the pie and quickly came and disappeared, the government of the day bowed to the demands without a well considered plan. We now see the effects of allowing a Caymanian built company being managed and operated overseas. Sadly any type of regulation after the fact, cannot correct the situation when the dissolution was poorly executed and control is lost to outsiders.