Nov 2010 Financial News

Decision on shares might be announced today

Nov 22, 2010

THE Barbados Government could very well be announcing a decision today on whether it intends selling its remaining shares in the Barbados National Bank (BNB) to Republic Bank and for how much.

Analysts believe that the decision could be one of the policy measures which Finance Minister Christopher Sinckler will be making when he presents the 2010/2011 Budget in Parliament this evening.

“Up to now Government has not made an official response to the issue “and the Budget would be the appropriate time to do so,” said a source.

“It would come as no surprise if Government demands a price higher than the share price quoted on the Barbados Stock Exchange for the shares,” he said. The last quoted price was $5.57 a share.

Last month Republic Bank announced that it intended to make an offer to the BNB shareholders to acquire the 34.7 per cent stake in the former Government owned Bank.

Republic Bank acquired 57 per cent of the BNB shareholding seven years ago. It later increased that amount to 65.13 per cent.

Republic had informed the Barbados Stock Exchange, Government, the Central Bank of Barbados and the Securities Commission of its intention to make the offer.

Since then debate has been rife with some people suggesting that Government demand a price beyond $6 a share. “If Republic wants it then they should pay a premium,” one analyst had suggested to this newspaper.
According to Republic Bank: “Over the last seven years Republic Bank has deepened its association with BNB, investing heavily in technology, expansion of the branch network, upgrade of branches and introduction of innovative and customer centric products to the Barbadian market, including its strong support for the growth of the Barbadian small business sector through new financing opportunities.”

The bank said that full ownership by Republic Bank would confer more benefits to BNB, its customers and the wider Barbadian community. (JB)


Source:
Barbados Advocate
Monday November 22, 2010

http://www.barbadosadvocate.com/newsitem.asp?more=business&NewsID=14150