Caribbean Investment Holdings Limited
22 June 2020
This announcement contains inside information
Road Town, Tortola,
The Company today announces that it has reached an agreement for the purchase of Scotiabank (
The Acquisition will be effected pursuant to a share purchase agreement among the Company, the Seller and BNS dated 19 June 2020 (the "Agreement"). Under the terms of the Agreement the Company will acquire all of BNS's licenced banking operations in
Under the terms of the Agreement the Company will pay the Seller an initial consideration of up to
In addition to the Initial Purchase Price, the Company may be required to pay up to an additional
The consideration up to and including
Accordingly, the overall maximum consideration payable for the Acquisition is
The Agreement is subject to regulatory approval and customary closing conditions. In addition, the Agreement has a condition that the notional aggregate consideration shall not exceed
In addition to the Agreement, upon closing SBL and BNS will enter into a transitional services agreement which will run for a period of up to 18 months from closing, and, SBL, The Belize Bank Limited ("BBL") and BNS (or its nominee) will enter into a foreign exchange and deposit commitment arrangement relating to the deposit of
SBL represents Scotiabank's banking operations in
For the financial year ended 31 October 2019, SBL recorded a profit of
The Board of CIHL has been exploring potential acquisition opportunities in line with its previously disclosed expansion strategy. The Board of CIHL believe that the purchase of SBL is an opportunity for the Group to expand its existing banking operations in
For further information contact:
Caribbean Investment Holdings Limited
Cenkos Securities plc
Nicholas Wells +44 (0)207 397 8920
Note: This and other press releases are available at the Company's website: http://www.cihltd.co.
Background Information
Caribbean Investment Holdings Limited ("CIHL") is a parent holding company with no independent business operations or assets other than its investments in its subsidiaries, intercompany balances and holdings of cash and cash equivalents. CIHL's businesses are conducted through its subsidiaries. The Belize Bank Limited ("BBL") is incorporated and based in Belize and focuses on the provision of financial services and lending to domestic clients. Belize Bank International Limited is incorporated and based in Belize and focuses on the provision of financial services and lending to international clients. CIHL also owns an international corporate services business based in Belize, which operates as Belize Corporate Services Limited. Within Belize, BBL is one of the largest, full service commercial and retail banking operation with a head office in Belize City and eleven branches extended into each of the six districts of Belize. The principal operations of BBL are commercial lending, consumer lending, deposit taking and related banking activities.