The Canadian-based, CIBC has announced a deal to sell its 91.67 per cent interest in CIBC Caribbean to the Bank of N.T. Butterfield & Son, reports indicate.
The deal which amounted to a total of US$1.6 billion in cash and stock, was announced today, May 28, as the bank reported its second-quarter profit rose compared with a year ago.
There was no immediate indication of what this will mean for the Caribbean market.
Under the CIBC Caribbean agreement, the bank said it will receive US$1 billion in cash and 52.1 million Butterfield common shares, which will represent about a 22 per cent stake in the company.
Chief executive Harry Culham said the deal will allow CIBC to "reallocate significant capital towards our highest strategic growth priorities."
"The transaction brings together two complementary banks with deep roots and established relationships across the region," he said on a conference call with analysts.
"We've been working with Butterfield for many, many years in the past so we know them well. Clients will benefit from an expanded range of financial services, including Butterfield's trust and wealth management expertise."
Analysists indicated that the effective exit from the Caribbean, which the bank has been attempting for some time is a welcome relief.
The deal which amounted to a total of US$1.6 billion in cash and stock, was announced today, May 28, as the bank reported its second-quarter profit rose compared with a year ago.
There was no immediate indication of what this will mean for the Caribbean market.
Under the CIBC Caribbean agreement, the bank said it will receive US$1 billion in cash and 52.1 million Butterfield common shares, which will represent about a 22 per cent stake in the company.
Chief executive Harry Culham said the deal will allow CIBC to "reallocate significant capital towards our highest strategic growth priorities."
"The transaction brings together two complementary banks with deep roots and established relationships across the region," he said on a conference call with analysts.
"We've been working with Butterfield for many, many years in the past so we know them well. Clients will benefit from an expanded range of financial services, including Butterfield's trust and wealth management expertise."
Analysists indicated that the effective exit from the Caribbean, which the bank has been attempting for some time is a welcome relief.
Community
Comments
What are your thoughts on this story? Share a respectful comment with the community.
Join the conversation
Your comment will appear after review. Email is only needed if you want reply or conversation notifications.