CIHL agrees acquisition of Scotiabank Belize
Carribbean Investment Holdings Limited (DI)
26.50p
16:39 29/11/21
Caribbean Investment Holdings (CIHL) has agreed to purchase Scotiabank Belize (SBL) from Scotiabank Caribbean Holdings - a subsidiary of the Bank of Nova Scotia - for an initial price of up to $30.5m (£24.5m), it announced on Monday.
Banks
4,024.34
17:09 25/04/24
The AIM-traded firm said the acquisition remained subject to regulatory approval and customary closing conditions.
It said the acquisition would be effected under a share purchase agreement between itself, Scotiabank Caribbean and the Bank of Nova Scotia, through which it would acquire all of the Bank of Nova Scotia’s licenced banking operations in Belize, through the purchase of the entire issued share capital of SBL.
Under the terms of the deal, CIHL said it would pay the Bank of Nova Scotia an initial consideration of up to $30.5m at close - an amount which would include both the expected shareholder equity of SBL of $28.5m, and a premium of $1.5m.
In addition, the company said it could be required to pay up to an additional $4.5m if the shareholders’ equity of SBL exceeded $28.5m, as a result of any regulatory change occurring between signing and closing of the agreement.
The consideration up to and including $30.5m would be payable in US dollars, and anything payable over that amount would be in Belize dollars.
“The board of CIHL has been exploring potential acquisition opportunities in line with its previously disclosed expansion strategy,” the company explained in its statement.
“The board of CIHL believe that the purchase of SBL is an opportunity for the group to expand its existing banking operations in Belize and that there are synergies between the group's current banking operations and the operations of SBL.
“As a consequence of the acquisition, the group's banking operations in Belize will be significantly expanded,” the directors said, adding that the acquisition was expected to be immediately earnings enhancing to CIHL.
At 1603 BST, shares in Caribbean Investment Holdings were down 2.2% at 40.1p.