Republic makes bid for Cayman biggest bank
The offer is priced between US$6 to US$6.75 per Cayman National share representing a premium between US$3 to US$3.75 per share as compared to the closing price of US$3 per Cayman National share on 3 August. The offer price is around 10 times earnings which is very attractive to republic as profit has been growing nicely for last year and the current year. The acquisition would allow Republic to merge Cayman National with Republic’s Cayman operations.
Cayman National has total assets of CI$1,558,692,523, up from $1,464,852,010 at June 2017. Total Comprehensive Income for nine months to June 2018 is CI$16,062,080 and is up from CI$10,841,267 in 2017.
The Offer remains subject to a number of conditions, including completion of due diligence by RBTTBL and recommendation by the Board of CNC for the Possible Offer.
Cayman National was Established in 1974 and is the largest financial services company based in the Cayman Islands, providing banking, trust and company management, fund administration, and wealth management services to clients locally and around the world, from the Cayman Islands, and the Isle of Man, with an office also in Dubai. Cayman National is publicly traded on the Cayman Islands Stock Exchange and comprises: Cayman National Bank Ltd., Cayman National Fund Services Ltd., Cayman National Securities Ltd., Cayman National Bank (Isle of Man) Limited and Cayman National Trust Company (Isle of Man) Limited and Cayman National (Dubai) Ltd.
RBTTBL was established in 1999 and is a licensed offshore international financial business operating pursuant to the International Financial Services Act, CAP. 325 of the Laws of Barbados which primarily conducts investment and investment management services. RBTTBL’s registered office is located at Republic Bank (Barbados) Limited, Independence Square, Bridgetown, Barbados. RBTTBL is a wholly-owned subsidiary of Republic Financial Holdings Limited. RBTTBL currently has wholly-owned subsidiary in the Cayman Islands, Republic Bank (Cayman Limited).
About Republic Bank (Cayman) Limited:
Republic Bank (Cayman) Limited was established on 13 January 1992 and currently holds a Trust License and an Unrestricted Class B Banking License under the Banks and Trust Companies Law of the Cayman Islands, as amended. Republic Bank (Cayman) Limited also holds a Mutual Funds License and is a registered Excluded Person for purposes of the Securities Investment Business Law of the Cayman Islands (SIBL-EP).
RFHL is listed on the Trinidad and Tobago Stock Exchange and has over US$10 billion of total assets. RFHL, along with its subsidiaries and associated companies, provides commercial banking and related services. These include investment banking, mortgage financing, securities trading and related activities, trustee services, credit card operations, foreign exchange and trade finance services as well as deposit taking and lending operations. Through its subsidiaries and associated companies, RFHL has operations domiciled in Barbados, Ghana, Suriname, Grenada, Guyana and St. Lucia in addition to Trinidad and Tobago.
No price change for TTSE – Tuesday
Trading on Trinidad & Tobago Stock Exchange ended on Tuesday with just 93,130 shares valued at $2,269,792 changing hands, compared to 148,531 shares valued at $1,117,407, on Monday.
Market activity ended with 12 securities trading and based on the last traded price none recording a change at the close, while 12 traded on Tuesday.
At the close the Composite Index rose 0.40 points on Tuesday to 1,233.48, the All T&T Index gained 0.80 points to 1,718.81 and the Cross Listed Index held firm at 100.54.
IC bid-offer Indicator| At the close of trading, the Investor’s Choice bid-offer indicator reading shows market sentiment with 4 stocks ending with higher bids than the last selling prices and 5 with lower offers.
Firm Trades| Angostura Holdings ended at $15.75, with 250 stock units changing hands, Clico Investments closed trading at $20, after 41,000 stock units changed hands, First Citizens settled at $35.01, after exchanging 2,604 shares, First Caribbean International Bank lost 1 cent and completed trading at $8.49, with 120 units, JMMB Group closed with a loss of 5 cents at $1.75, after exchanging 649 shares LJ Williams B share settled at 70 cents, after exchanging 10,000 shares. Massy Holdings concluded at $46.90, after exchanging 584 shares, Republic Financial Holdings concluded trading at $102.88, in exchanging 970 shares, Sagicor Financial ended at $7.50, with 3,046 stock units changing hands Scotiabank shed 1 cent and completed trading at $65.01, with 6,255 units changing hands, Trinidad & Tobago NGL increased 14 cents and settled at $29.74, trading 26,152 shares and Trinidad Cement concluded trading at $2.95, after exchanging 1,500 shares.
Prices of securities trading for the day are those at which the last trade took place.
More record for JSE majors
The main market of the Jamaica Stock Exchange cleared another mile stone after 15 minutes off the market opening on Tuesday with the All Jamaican Composite Index breaking through the 347,000 points mark.
The All Jamaican Composite Index jumped 2,501.62 points to at 347,551.83 and the JSE Index gained 2,279.26 points to close at 316,658.95. The Junior market was flat at 3,130.20 points but Medical Disposables traded at a new record high and headed to $6.68 having posted strong gains in its first quarter profit.
Helping in the record move on the day after the in the main market was closed for the Independence Holiday, is NCB Financial rising to $104 and Grace Kennedy at $57.
Unilever dives $2.20 on TTSE – Monday
Unilever Caribbean crash $2.20 to sit at $27 just above the low of $26.75 reached in July, which is just above the price back in early July 2011.
Trading on Trinidad & Tobago Stock Exchange on Monday was more moderate than on Friday with just 148,531 shares valued at $1,117,407 changing hands, compared to 271,085 units valued at $2,133,526, on Friday.
Market activity ended with 12 securities trading against 10 on Friday, with 4 advancing, 6 declining and 3 remaining unchanged. At the close the Composite Index declined 1.42 points on Monday to 1,233.08, the All T&T Index fell 0.83 points to 1,718.01 and the Cross Listed Index slipped 0.28 points to close at 100.54.
IC bid-offer Indicator| At the close of trading, the Investor’s Choice bid-offer indicator reading shows market sentiment with 3 stocks ending with higher bids than the last selling prices and 6 with lower offers.
Gains| Clico Investments closed with an increase of 3 cents at $20, with 2,992 stock units changing hands, One Caribbean Media rose 1 cent and concluded trading at $12.36, after exchanging 410 shares, Republic Financial Holdings finished 5 cents higher and concluded trading at a 562 weeks’ high of $102.88, after exchanging 145 shares and Trinidad & Tobago NGL gained 14 cents and settled at $29.74, after exchanging 3,921 shares.
Losses| First Caribbean International Bank lost 1 cent and completed trading at $8.49, with 114 units, JMMB Group ended trading 5 cents lower at $1.75, after exchanging 100,412 shares and Scotiabank concluded trading with a loss of 1 cent and ended at $65.01, with 3,522 units changing hands.
Firm Trades| First Citizens settled at $35.01, after exchanging 8,364 shares, National Flour completed trading at $1.79, with 137 units and Sagicor Financial ended at $7.50, with 27,732 stock units changing hands.
Prices of securities trading for the day are those at which the last trade took place.
T&T central bank raised repo rate to 5%
Trinidad and Tobago Central Bank hiked the repo rate by 25 basis points to 5 percent in June, in response to rising rates in the United States and signs of some improvement in the Trinidad economy.
The bank said, “rising interest rates in the US combined with relatively stable rates domestically have pushed the TT-US yield differential on three-month Treasuries further below parity. The differential currently stands at -74 basis points. The US Fed has signaled that further hikes are planned in the context of the solid US growth outlook. Should this materialize it could further widen the negative TT-US interest rate differential if domestic interest rates remain unchanged.”
The Central Bank further stated, “on the domestic front growth in the first five months of 2018 has been concentrated in the energy sector and is expected to spill over into non-energy activities, and there are encouraging signs in distribution and a recovery of business credit, although construction remains sluggish. Meanwhile, headline inflation continued to be low, measuring 1.1 percent(year-on-year) in April 2018, up from 0.8 percent in the previous month.”
The central bank went on to state that “private sector credit growth maintained its positive momentum, rising in April by 5.8 percent (year-on-year). Lending continued to be driven by loans for refinancing and debt consolidation, while some rebound in business credit suggests that private sector confidence could be strengthening. Further, the commercial banks’ weighted average lending rate has been falling since December 2017 and stood at 8.15 percent at end-March 2018. Liquidity levels trended lower but remain comfortable.”