–assures customers it’s in their best interest

FOUR days after the announcement was made that Scotiabank signed an agreement to sell its banking operations in nine countries in the Caribbean to the Republic Financial Holdings Limited, the banking company reassures customers that the agreement will provide the best long-term solutions for them.

In a release sent out on Friday, the bank said, “We are confident that this agreement provides the best long-term solution for our customers. We will work closely with Republic to provide as smooth a transition as possible for all customers and employees, and, as part of the transaction, all impacted employees will join Republic.”
However they also pointed out that the agreement is subject to regulatory approvals and customary closing conditions.

Until the regulatory approval is obtained and closing conditions are met and the transaction closes, all Scotiabank operations in the nine countries will continue as usual.
Scotiabank said they are proud to have entered into this agreement with Republic, which they deem as a leading financial institution with operations across the Caribbean that is committed to investing in the business and delivering enhanced financial products and services that best serve customers’ needs.

The agreement gives ownership to RFHL in Guyana, St. Maarten and the Eastern Caribbean territories, including Anguilla, Antigua and Barbuda, Dominica, Grenada, St. Kitts and Nevis, St. Lucia, and St. Vincent and the Grenadines.
The purchase price is US$123 million, which represents US$25 million consideration for total shareholding of Scotiabank Anguilla Limited; and a premium of US$98 million over net asset value for operations in the remaining eight countries, the Trinidad-headquartered bank said in a release.

This price does not include any amounts required to capitalise the branches post-closing, Republic Bank said. According to Republic Bank, the agreement executed on November 27, 2018, signalled the commencement of a transaction that is subject to all regulatory and other customary approvals and conditions.

In making the announcement, Ronald F. de C. Harford, Chairman of RFHL, 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.”