Republic wants all BNB shares
Seven years after acquiring majority control of Barbados National Bank from Government, Republic Bank of Trinidad and Tobago wants 100 per cent control of the institution.
And if the Trinidadians make an offer at the current share price of $5.57, Republic Bank will have to shell out approximately $184 million to local shareholders.Republic Bank said in a release today it will 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).According to Republic Bank, it already holds 65.13 per cent of the 96 million BNB shares and has notified Government, the Central Bank of Barbados, and the Securities Commission of its ownership plan for the former state-owned bank.
“This significant investment is indicative of Republic Bank’s commitment to the growth of the Barbados economy and its support of the Barbados business environment,” Republic Bank said in a statement.The Trinidad and Tobago-headquartered regional financial institution says it has no plans to change the local board of directors after the full acquisition is completed.
The Barbados Government owns 17 million of the outstanding BNB shares, and the National Insurance Board 9.6 million and the others owned by ICBL and other institutional and individual investorsIt adds: “Full ownership by Republic Bank will allow BNB, its customers and the wider Barbadian community to benefit from the increased streamlining of internal reporting processes, harmonisation of systems and procedures, the availability of a broader range of products and services, social investment programmes and will provide greater career and development opportunities for the employees of BNB through cross training and exchanges within the Republic Bank Group.”