BASSETERRE, St. Kitts – THE Scotia Bank operations in St. Kitts and Nevis, along with those in eight other Caribbean markets, will be brought under the ownership of the Republic Financial Holdings Limited (Republic Bank).
According to the business financial post, the Bank of Nova Scotia plans to sell its banking operations in nine Caribbean countries and its insurance operations in two other regional markets.
The Nova Scotia operations in Anguilla, Antigua, Dominica, Guyana, St. Kitts & Nevis, St. Vincent and the Grenadines, St. Lucia, St. Maarten and Grenada are all being acquired by the Trinidad and Tobago-based company.
According to the Post’s report, Scotia Bank indicated that its subsidiary operations in Jamaica and Trinidad and Tobago will sell their insurance operations to and partner with Sagicor Financial Corp. Ltd. to provide products and services in the two countries, for an undisclosed amount.
Media reports placed the acquisition at US$123 million. The Trinidad Guardian reported that US$25 million is for the total shareholding of Scotiabank Anguilla Limited and a premium of US$98 million over net asset value for operations in the other eight territories.
A statement from RFHL chairman, Ronald F deC. Harford said: “This acquisition represents another major milestone for the Republic Group. As we grow and acquire significant positions in our existing markets, it is important that we continue to broaden our footprint, regionally and internationally,”.
The statement said the price does not include any amounts required to capitalize the branches post-closing.
According to RFHL, the agreement, executed on November 27, 2018 signaled the commencement of a transaction that is subject to all regulatory and other customary approvals and conditions.
Up to press time, no details were given by Nova Scotia St. Kitts.