First Caribbean buys CIBC for US$76.8M

(CNS): FirstCaribbean International Bank Limited has announced that it has entered into an agreement with its majority shareholder CIBC Investments (Cayman) Limited, to acquire all of the issued and outstanding shares in CIBC Bank and Trust Company (Cayman) Limited, a Cayman Islands Company and CIBC Trust Company (Bahamas) Limited, a Bahamian company for a US$76.8 million subject to regulatory approvals. Then bank said the move would help boost its wealth management services in the region.

“This acquisition by FirstCaribbean at this time speaks to the confidence we place in our Wealth Segment to leverage the expertise and product offerings of our parent Canadian Imperial Bank of Commerce and become the market leading Wealth services provider in this region,” said Chairman of FirstCaribbean Michael Mansoor as the firm made the announcement.

FirstCaribbean said it will issue 51,917,808 common shares in its capital as payment of the Purchase Price. CIBC Investments (Cayman) Limited will at the conclusion of the transaction own 1,445,725,257 or 91.67% (91.39% prior to the transaction) of the shares of FirstCaribbean.
The acquired entities provide trust and fund administration services business in the Caribbean to private wealth management clients and institutional investors.

CEO of FirstCaribbean Rik Parkhill said the businesses are a wonderful addition to the FirstCaribbean group.  “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 synergies,” he added.

Ben Gillooly CEO of the firms being acquired said it was great to become part of the FirstCaribbean family.  “We will be able to leverage FirstCaribbean’s diverse footprint in the Caribbean Region to deliver our products and services to Wealth and Institutional Customers,” the bank boss said.