Securing Your Future Is Our Main Investment

Updated: 28-03-2024 - 12:00PM   8 6 CLOSED

Financial News

Feb 2007 Financial News

CIBC to pay US$212m for FCIB minority shares

Feb 07, 2007

CIBC will pay US$212 million for another 129.8 million shares offered up by minority stockholders of FirstCaribbean, following the close of the takeover bid that has now boosted its ownership in the regional commercial bank to 91.49 per cent.

The offer, which closed January 30, was made at US$1.6335 per share through its subsidiary CIBC Investments (Cayman) Limited (CICL).

CIBC said it has already indicated to FirstCaribbean International Trust and Merchant Bank (Barbados) Limited, the dealer manager for the offer, that it would pay for all tendered shares.

Some 8.5 per cent of the bank remains in the hands of minority interests.

The acquisitions, including a 43.7 per cent stake held by Barclays Plc, has cost CIBC more than US$1.2 billion.

FirstCaribbean Bank which has about 100 branches in 17 countries, was created from the merger of the regional operations of Barclays Plc of the United Kingdom and CIBC of Canada in 2002.

Its assets of US$12 billion makes it the largest traded commercial bank in the region.

Strong minority ownership

CIBC Investments in December bought out 599.4 million or 43.7 per cent of Barclays' shares in the bank for US$988.65 million, and subsequently made a buy offer to minority shareholders.

Barclays retained 66.6 million shares in FirstCaribbean, according to a notice on the conclusion of the deal filed with the Jamaica Stock Exchange in late December, suggesting that the U.K. bank remains among the 8.5 per cent that continue to hold minority positions in the bank.

"Both CIBC and FirstCaribbean are committed to maintaining a strong minority ownership that they expect to grow in the future," the JSE notice said.

CICL restated the commitment on February 2.

CIBC now owns more than 1.39 billion of FirstCaribbean's 1.5 billion of issued shares.


Source:
The Jamaica Gleaner
Wednesday 7th February, 2007
http://www.jamaica-gleaner.com/gleaner/20070207/business/business6.html