Cayman National sale to Republic done-deal

| 13/03/2019 | 11 Comments
Cayman News Service

Cayman National

(CNS): Republic Financial Holdings Limited (RFHL) has completed its controversial acquisition of Cayman National Corporation Ltd, having purchased the equivalent of 74.99% of the once wholly Caymanian-owned bank at US$6.25 per share. The transaction cost the Trinidad-based bank just under US$198.5 million, according to a press release. Republic has said that all of the current CNC employees will remain, that the bank will not be rebranded and that it will continue to be publicly traded on the Cayman Islands Stock Exchange.

“Cayman National is a leading full-service institution in one of the world’s most sophisticated financial centres, its brand is resilient and strong, and its management and employees are a critical part of that brand strength,” Republic chairman Ronald Harford stated as the deal closed. “We do not want this to change. It will continue to be the same bank known, loved, and run by a very strong and experienced team of Caymanians.”

The former president of the bank, Ormond Williams, recently filed a lawsuit after he was unexpectedly fired after 15 years in the job, but senior officials denied that his dismissal is related in any way to the sale of the majority shares in the CNB to Republic.

In February, just ahead of the completion of the sale, the former chief of Deutsche Bank (Cayman) Ltd, Janet Hislop, was appointed as Williams’ replacement. So far, there have been no indications of any other pending staff changes.

In the press release about the closing of the deal, Harford said the two institutions shared the same ideals on values, business processes and opportunities.

“The CNC acquisition will allow us to combine and leverage the talents of our two world-class organisations. We are particularly eager to learn from Cayman National’s experience in international financial services and serving high net worth clients,” he added.

As a result of this transaction, the asset base of the RFHL Group will increase to approximately US$12 billion.

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Category: Banking & money, Business

Comments (11)

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  1. Anonymous says:

    Janet was the chief of DB? How she is considered fit to oversee a retail operation is besides me! How CIMA and the government allowed for that change to occur is mind-blowing. The clock to the 6 month honeymoon period before the shake-up begins has started. Ormond’s dismissal had nothing to do with the sale? It would have been more admirable had they not alluded to it in the first place and touched on other items such as we think Janet is a great addition and how we are excited to continue and grow the brand/legacy!

  2. Anonymous says:

    There are shareholders doing happy dances in their bedrooms all over the island. They will have no trouble finding places to put their profits.

  3. Anonymous says:

    That’s why my money is in my mattress cause god knows I not trusting Butterfield either!

  4. Anonymous says:

    Why don’t the Caymanians who are upset with CNB selling out start up another bank, one owned 100% by Caymanians, with a view to replacing CNB in a few years’ time. It could be done and would be appealing to nationalism – it will pull a lot of CNB customers across once you are up and running.

  5. Anonymous says:

    I hope the shareholders that sold their shares are smart enough to not keep those funds with CNB. There is no longer a diverse base of shareholders but rather most shares owned by one entity. What they say goes from here on. Put your money with institutions (other than a Bank) that offers a fixed rate of return for your money.

  6. Anonymous says:

    Yes they have got their 30 pieces of silver and when the upheaval starts and the unemployment lines fill up I only hope Caymanians hold those responsible for this situation accountable and not blame others. Thank you Mr Flowers and Mr Thompson for staying true to your Caymanian roots and values. Yes saw King

    • Anonymous says:

      Every single shareholder invested to make a profit. There will never be a bigger profit than this one. I understand your feelings of a lost national bank, however I think your vilification of those who sold to be very misplaced.

      I strongly suspect that people like yourself casting stones at shareholders who sold were never investors. So, you didn’t respect your bank enough to invest in it, but you have the gall to besmirch those who did, who carried the bank all this time, finally realised a profit and decided to sell?

      Bad form. If Water Authority becomes privatised and the shares go up, am I expected to hold onto those also because people who didn’t invest want it to stay the same?

      Put your money where your mouth is, and stay out of my finances.

  7. Anonymous says:

    Shareholders, bank your money for the shares and ” say nothing” sit back and watch how
    it all unfolds.

    I am a shareholder who will be cashing my check, and watching from from a distance.

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