Nov 2010 Financial News

Republic Bank pulls out

Nov 26, 2010

Republic Bank has announced that it will not be pursuing its proposed offer to purchase the remaining shares in its subsidiary, the Barbados National Bank (BNB).

In a release sent to the media yesterday, Managing Director, David Dulal-Whiteway advised that although the Group was satisfied with its existing shareholding in BNB, it had been willing to acquire the additional shares since the Government was desirous of selling.

Following discussions with the Government, both parties were unable to agree on an appropriate transaction price and as a result, the Group would not be proceeding with the transaction at this time.

Dulal-Whiteway reconfirmed Republic Bank’s commitment to Barbados and advised that the Bank will continue its strong support of the Barbadian small business sector and its local investment in network upgrades, branch expansion and community activities which are designed to fortify the Barbadian social sector.

Republic Bank currently has controlling interest in BNB with 65.13 per cent of the shares.

On the 23rd of October this year, the Trinidadian Bank said it would make an offer for all 33 million outstanding BNB shares, the majority of which are held by the Government of Barbados, the National Insurance Board and the Insurance Corporation of Barbados Limited (ICBL).

The Barbados Government owns 17 million of the outstanding BNB shares, the National Insurance Board 9.6 million, with the others owned by ICBL and other institutional and individual investors.

Dulal Whiteway was quoted as saying that Republic Bank is unlikely to offer more than the current market price of approximately $5.57 per share to shareholders of Barbados National Bank (BNB).

If this offer was accepted by local shareholders, the Trinidadian institution would have had to shell out approximately Bds$184 million to local shareholders.


Source:
Barbados Advocate
Friday November 26, 2010

http://www.barbadosadvocate.com/newsitem.asp?more=business&NewsID=14221