By: Trinidad Guardian

Monday October 25,

Republic Bank would be required to find $584 million if it prices its offer for the 34.8 per cent of the Barbados National Bank that it does not own at the current price of Bds$5.57 on the Barbados Stock Exchange. 

Republic Bank, which currently owns 65.13 per cent of the 96 million Barbados National Bank shares, announced on Friday afternoon that it was making a bid to acquire 100 per cent of the Barbadian bank. With the Barbados National Bank trading at Bds$5.57, Republic Bank would be required to pay the mostly Barbadian shareholders Bds$184 million, which works out to be $584 million, for the 33 million Barbados National Bank shares that it does not own.

In its Saturday edition, the Barbados Nation reported that the Barbados Government and the country’s National Insurance Board owned 26.6 million of the outstanding Barbados National Bank shares between them with the Government owning 17 million of the outstanding BNB shares, and the National Insurance Board 9.6 million. 

In its 2009 financial year, Republic generated 80 per cent of its profit before tax in Trinidad (some $1.061 billion) and 16 per cent of profit before tax in Barbados ($214 million). Apart from owning 65.13 per cent of the Barbados National Bank, Republic Bank also owns 51 per cent of Republic Bank (Grenada) and Republic Bank (Guyana).

In Friday’s statement, Republic said its bid to acquire 100 per cent of Barbados National Bank was “indicative of Republic Bank’s commitment to the growth of the Barbados economy and its support of the Barbados business environment.” 

According to Republic Bank: “Over the last seven years Republic Bank has deepened its association with BNB, investing heavily in technology, expansion of the branch network, upgrade of branches and introduction of innovative and customer centric products to the Barbadian market, including its strong support for the growth of the Barbadian small business sector through new financing opportunities.”

The bank said that full ownership by Republic Bank would allow BNB, its customers and the wider Barbadian community “to benefit from the increased streamlining of internal reporting processes, harmonization of systems and procedure, the availability of a broader range of products and services, social investment programmes and will provide greater career and development opportunities for the employees of BNB through cross training and exchanges within the Republic Bank Group.”