CIBC bids to sell First Caribbean

CANADIAN Imperial Bank of Commerce plans to list its $2 billion Caribbean unit, FirstCaribbean, in New York, enabling it to exit a region where earn­ings growth has been slow, three people familiar with the matter have told Reuters.

Canada's fifth-biggest lender, which will provide an update to investors on the bank's growth strat­egy tomorrow, no longer views the business as a core asset, the people said, declining to be named as the information is not public.

"FirstCaribbean is considering a potential stock market listing in the US, the world's deepest capital market," CIBC spokeswoman Caroline Van Hasselt confirmed.

"While no decisions have been made, such a listing would provide CIBC FirstCaribbean with access to a larger investor base, enhanced liquidity, and greater access to capital to support long-term growth," she said.   

CIBC, which has been doing business in the Caribbean since the 1920s, could start by listing 20 per cent of the business early next year and subsequently  sell down more shares, two of the people said.           ·

CIBC has been trying to sell the business, which operates in 17 Caribbean markets, including Trinidad and Tobago, for the last two years but could not 'find a single buyer for the whole business, the people said.


Source:
The Express Newspapers
Wednesday December 13th 2017