The former Barbados National Bank is now completely in Trinidad and Tobago hands.
After offering 1,614 about $167 million ($5 each) for their 34.86 minority stake in Republic Bank (Barbados) Limited last year, regional financial institution Republic Bank Limited announced today that the Barbados-based bank was now its wholly-owned subsidiary.
It means that no one in Barbados owns a stake in the Barbados operation which has been in its Trinidad parents control for the last 10 years after government sold the majority of its shares to it. In selling its remaining share of its former bank when it accepted the most recent offer, the Freundel Stuart Administration received about $87.2 million, while the National Insurance Scheme, another major shareholder at the time, earned $48 million.
Giving its rationale for wanting 100 per cent ownership of its Barbados subsidiary, Republic Bank said it would be afforded “more flexibility in determining what additional services and products can be offered in Barbados and a greater likelihood of an increase in the return on investment”.
This was in addition to its provision of “more cross training opportunities and exchanges for staff of RBBL”.
“The current shareholding of Republic Bank Limited only entitles it to offer some and not all of its services and products. With every new product offering and service, there is the issue of cost and the current shareholding restricts the return on investment which is a critical consideration in any business decision made by a corporation,” it noted in the offer document. (SC)