Republic Bank TT (Barbados) Ltd (RBTTBL) – a wholly-owned subsidiary of Republic Financial Holdings Ltd (RFHL) – is one step closer to possibly becoming the majority shareholder of Cayman National Corporation Ltd (Cayman National) – the largest financial services company based in the Cayman Islands.
RFHL on Monday announced that "an implementation agreement" was executed last Friday between RBTTBL and Cayman National.
"The agreement is for RBTTBL to make an offer to acquire a minimum of 51 per cent and up to 74.99 per cent of the shareholding of Cayman National. The offer was made on September 14, by way of tender offer, to the Cayman National shareholders at US$6.25 per Cayman National share," RFHL said.
Contacted by Newsday, RFHL said, "The deadline is October 22, 2018," by which Cayman National shareholders must accept or reject the tender offer.
In its September 17 statement, RFHL president Nigel Baptiste explained that such an acquisition would strengthen the presence of the Republic Group in the region – a move which is in keeping with the bank’s regional expansion strategy.
"We have had a presence in the Cayman Islands since 2006 (Republic Bank (Cayman) Ltd) and we look forward to building on that relationship as we continue to seek out opportunities for growth in the Cayman Islands, the Caribbean and beyond," Baptiste said.
The news comes six weeks after the Cayman National board announced it had received an "unsolicited proposal" from RBTTBL to acquire the aforementioned range of shares by way of a tender offer to shareholders.
In a press advertisement that same week, RFHL said it had "entered into discussions" with Cayman National for the potential acquisition of Cayman National via RBTTBL. The terms of offer then were between US$6 to US$6.75 per Cayman National share.
Cayman National provides banking, trust and company management, fund administration, and wealth management services to clients locally and around the world.
Cayman National comprises Cayman National Bank Ltd, Cayman National Fund Services Ltd, Cayman National Securities Ltd, Cayman National Bank (Isle of Man) Ltd and Cayman National Trust Company (Isle of Man) Ltd, and Cayman National (Dubai) Ltd.