Bought Out: Bermuda Commercial Bank
Following approval of the Bermuda Monetary Authority, Permanent Investments Limited will become the controlling shareholder of Bermuda Commercial Bank Limited [BCB].
Permanent Investments Limited is a Bermuda exempted company that is owned and funded by a group of four investment funds and investment companies.
Bermuda Commercial Bank is one of Bermuda’s four licensed banks, and was established in 1969. It offers a range of services including Banking, Trust, comprehensive Fund Administration, and Corporate Services.
Permanent has acquired the entire shareholding interest of First Curacao International Bank N.V. in BCB, representing an aggregate of 3,461,577 common shares or approximately 54% of the currently issued and outstanding BCB common shares. In addition, the shareholders of Permanent have acquired all of FCIB’s 1,200,000 outstanding options in BCB.
In addition, BCB and Permanent have entered into an agreement pursuant to which Permanent will make a cash offer to acquire all the remaining issued and outstanding common shares of BCB by way of a tender offer (the “Offer”). Under the Offer, Permanent will make an offer to acquire the remaining BCB common shares that they do not already own at a price of $9.88 per share. The Offer price for the common shares of BCB represents a 27% premium over the last traded price.
The board of directors of BCB has approved the initial purchase and the proposed tender offer transaction and will recommend that its shareholders carefully consider the Offer. The financial advisory firm Keefe, Bruyette & Woods provided the board of directors of BCB with advisory services in support of the sale process.
The Board of BCB are pleased to welcome the appointment of Mr. Michael Collier, Mr. Warren McLeland, and Mr. Eric Stobart to the Board of Directors. Mr. Anthony Cijntje, Mr. Geomaly Martes, and Mr. Michael Cranfield resigned from the BCB Board effective today following the sale of FCIB’s interests in the Bank. Mr. Cranfield remains as the Chief Information Officer of BCB.
All three new appointees are formerly senior bankers with extensive international experience:
- Mr. Michael Collier is currently the Chairman of the Ascendant Group of Companies and a former President & Chief Executive Officer of the Bank of Butterfield.
- Mr. Warren McLeland is a former Managing Director of Chase Manhattan Bank.
- Mr. Eric Stobart is a former managing director & finance director of Hill Samuel Bank.
Permanent was represented by First Bermuda Group, a member of the Bermuda Stock Exchange.
This follows the effective “buyout” of Bank of Butterfield after receiving $550 million in capital infusion on March 2, 2010. Bermuda’s other major bank, the Bank of Bermuda, was bought by British banking giant HSBC in 2004. Capital G is the fourth, and final, Bermuda registered bank.
