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FirstCaribbean Acquires Bahamas CIBC Trust Company

FirstCaribbean International Bank Ltd has entered into an agreement with its majority shareholder CIBC Investments (Cayman) Ltd, to acquire all of the issued and outstanding shares in CIBC Bank and Trust Company (Cayman) Ltd and CIBC Trust Company (Bahamas) Ltd.

The two acquired entities provide trust and fund administration services in the Caribbean to private wealth management clients and institutional investors and form part of FirstCaribbean’s growth strategy in the wealth segment.

Commented FirstCaribbean’s CEO Rik Parkhill, “They are geographically complementary, they possess strong complementary balance sheets, solid and experienced management teams and their operations will integrate seamlessly with FirstCaribbean yielding cost and revenue synergiesm.”

The transaction, for a purchase price of US$76.8 million, effectively transfers direct ownership of two of CIBC’s Caribbean wealth management firms to its regional affiliate FirstCaribbean in exchange for a larger stake in that entity.

FirstCaribbean will issue 51,917,808 common shares in its capital as payment for the Cayman and Bahamas trust companies. CIBC Investments (Cayman) Ltd will at the conclusion of the transaction own 1,445,725,257 or 91.67 per cent (91.39 per cent prior to the transaction) of the shares of FirstCaribbean.

Posted in Business

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