Having first announced its move to take over Cayman National Corporation in September last year, the Trinidad & Tobago based Republic Group revealed this week that its purchase has been approved and authorised, and is now final.
An announcement from CNC stated that, having received all required government and regulatory approvals, the partial offer to purchase Cayman National shares by Republic Bank Trinidad & Tobago (Barbados) Limited, expired on Friday, 8th, 2019, paving the way for final ownership by Republic Bank to take place.
The announcement was made by CNC’s President and CEO, Stuart Dack, and its Chairman of the Board of Directors, Truman Bodden. In a joint statement, they said:
“We are delighted that Cayman National will now be part of the extended Republic family whilst still retaining our own unique identity. We will continue to provide our local touch, with the mainly Caymanian team providing high levels of services throughout all three of our Islands. As previously announced, lending decisions will continue to be made in the Cayman Islands, and the majority of the board will continue to be comprised of Caymanian directors, but we will now be backed by the resources of a global financial player.”
The two bank executives called the move a “major milestone in the history of Cayman National” and said it was “a very favourable step towards securing the stability of the organisation for years to come”.
CNC joins an entity that is quickly growing in the region, as Republic Group is one of the region’s largest financial institutions, with assets in excess of US$9.4 billion and equity of US$1.4 billion, 117 branches and 5,574 staff across the Caribbean and Ghana.
According to CNC, its staff members would not be laid off as a result of the take-over, at least not any time soon.
“Republic has committed not to institute any employment layoffs or restructuring that will materially reduce employment within the first year following the completion of the Offer. Further, Republic has committed to maintain the majority of the workforce currently employed by Cayman National and each of its subsidiaries within the Cayman Islands, and not institute systemic layoffs or redundancies, unless there is a significant adverse economic change or compelling business reason to do so, for at least five years following the completion of the Offer,” a statement from Cayman National revealed last year.
However, former Cayman National Bank president, Ormond Williams, is suing Cayman National Bank for alleged wrongful termination, having been let go last November. Former Deutsche Bank (Cayman) Ltd head Janet Hislop has been appointed as Mr Williams’ successor. Ms Hislop has a long association with CNC, as her father, Benson Ebanks, is one of the entity’s founding shareholders and long serving past Chairman.
It was also stated that Republic Bank T&T had committed to maintain all of Cayman National’s current operational branches in all three Cayman Islands, and all of its subsidiaries, for at least three years unless a significant adverse economic change or other unforeseen and compelling business reason forces any significant operational change. The name will still remain the same for the next five years as well.
Shareholders resident in the Cayman Islands and entitled to consideration under the Partial Offer can collect their cheque from 12pm (Cayman Islands time) on 13 March 2019 at Cayman National Securities Ltd., 2nd Floor, Suite 6201, 62 Forum Lane, Camana Bay, Grand Cayman. Thereafter, cheques will be available for collection at the same address during regular business hours.