The recent deal to amalgamate the Signia Financial Group and Globe Finance is a “game changer” for the local financial sector, company officials have said.
Chairman of the new entity, which will be called SigniaGlobe Financial Group Inc, Sir Geoffrey Cave is confident the move “can only strengthen operations and open doors for new business opportunities and further expansion. We see this new venture as another platform for regional expansion, which is definitely on the cards. ”
Signia is jointly owned by conglomerates GraceKennedy of Jamaica and Cave Shepherd & Company Limited, each controlling 40 per cent, while Massy Holdings of Trinidad owns the remaining 20 per cent.
The Globe-Signia transaction was estimated as a BDS$11.8 million deal. GK Capital Management Limited, the investment and advisory arm of GraceKennedy, advised Signia in the transaction.
In a press release this week, GKL Group Chief Executive Officer Don Wehby said the deal would result in a stronger positioning of the new entity.
“We continue to look for opportunities to invest across the region. This transaction is in keeping with our long-term strategy and we believe that this merger, which will result in the creation of the largest merchant bank in Barbados, will significantly strengthen our financial services platform in the Caribbean,” said Wehby.
CEO of Signia Paul Ashby, who will continue in that role in the new company noted that with the increasing costs of compliance management required by financial institutions, such synergies allowed for more efficient and effective operations.
“The strength of the new company would facilitate larger commercial deals and better opportunities to serve a wider clientele both locally and regionally,”
Signia and Globe are both known for their high quality of products and services, along with efficient customer care and our customers can be assured this will not change. Rather, the combining of both our human and financial resources will provide significant benefits,” he said in a press release issued today.
Signia and Globe have several common product offerings, including fixed deposits, retail and commercial lending, commercial leasing and foreign exchange services. Signia is also a registered stockbroker, licensed by the Barbados Stock Exchange
Ashby disclosed that although the agreement had been signed and regulatory approval obtained, that approval was subject to receipt of an approved amalgamation certificate from the Corporate Registry.