CIHL announced last week that it is moving to acquire the Scotiabank Belize pending final regulatory approval.
As at December 31, 2019, both banks held 47% of commercial bank loans. Barrow said that the Belize Bank and Scotiabank Ltd retained 50% of assets as well as 48% of deposits.
He said the two banks have 57% of current year's profits, 60% of equity and 76% of quarterly net income. BBL’s “weighted average lending rate... is 20% higher than Atlantic Bank Ltd...” he added.
Caribbean Investment Holdings Ltd., a holding company with Belize banking interests, had agreed to buy 100% of Scotia-bank (Belize) Ltd. for US$30.5 million.
The initial purchase price includes both the expected shareholder equity of SBL of US$28.5 million and a premium of US$1.5 million.
In addition to the Initial Purchase Price, the Company may be re-quired to pay up to an additional US$4.5 million in the event that the shareholders equity of SBL exceeds US$28.5 million as a result of any regulatory change occurring between signing and closing of the Agreement.
The acquisition is subject to regulatory approval and customary closing conditions. Under the terms of the agreement, CIHL will acquire all of BNS’s licensed banking operations in Belize through the acquisition of the entire issued share capital of SBL.
- Countries: Belize
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