Caribbean M&A Watch: NCB-Guardian Holdings deal, Scotiabank sales, RFHL funding

NCB closes Guardian acquisition

Jamaica’s largest financial institution, National Commercial Bank (NCB) announced it had successfully closed a deal to purchase a majority stake in Trinidad and Tobago-based insurer Guardian Holdings Limited (GHL).

Under the deal, NCB will pay US$207mn for the purchase of approximately 144mn shares in GHL, converting NCB in one of the Caribbean’s largest financial groups.

“The offeror expects that the GHL shares deposited by shareholders will be taken up and paid for within ten days of the extended closing date, that is, by the 13th day of May 2019,” NCB said in a release.

The deal comes after multiple delays with NCB clearing a final hurdle earlier Tuesday, when the company received a key license for the transaction from the T&T authorities, required under the nation's foreign investment act.

Scotia completes DR sales

Moving forward with its regional refocus, Canadian lender Scotiabank said it completed the sale of its pension fund manager Scotia Crecer AFP and insurer Scotia Seguros in the Dominican Republic to agribusiness and financial services company Grupo Rizek.

"With the closing of this transaction, we have completed one more phase in the optimization of our international footprint. Our continued focus is on our key markets and businesses in the Pacific Alliance countries, the Caribbean and Central America, where we can achieve greater scale and deliver the best value for our customers," said Nacho Deschamps, group head of international banking and digital transformation at Scotiabank, in a press release.

In November 2018, Scotiabank announced the sale of its operations in Antigua and Barbuda, Anguilla, Dominica, Grenada, Guyana, St Kitts & Nevis, St Lucia, St Maarten, and St Vincent and the Grenadines for US$123mn to T&T-based Republic Financial Holdings Ltd. (RFHL).

Funds for expansion

RFHL confirmed to BNamericas that it has borrowed a total of US$442mn in three transactions during the last three months to finance both its organic and acquisition-driven expansion plan.

In March, RFHL completed its acquisition of Cayman National Corporation for around US$198mn to secure a 75% stake in the company.