FirstCaribbean International Bank: at centre of the controversy. - Andrew Smith/Photography Editor

CIBC has completed purchase of 599.4 million shares of FirstCaribbean International Bank (FCIB) under the previously announced plans to acquire Barclays Bank's 43.7 per cent ownership in the regional financial institution.

The Canadian bank immediately made an offer of US$1.62 per share for full takeover of all shareholdings in the regional bank by way of an offer circular from CIBC Investments (Cayman) Limited.

The offer, which is valid to January 30, was made under mandatory rules of acquisition. FCIB, which has assets of $12.4 billion and a market capitalisation of over US$2.8 billion, is listed on exchanges in Jamaica, Barbados and the Eastern Caribbean.

The bank has indicated that it's not after full ownership.

"While the offer has been made to all shareholders in fulfilment of the regional securities takeover codes, both CIBC and FirstCaribbean have publicly stated that they are committed to maintaining a strong minority ownership in FirstCaribbean, which they expect to grow in the future," FCIB said in a release announcing the takeover bid.

The Barclays sale to CIBC was first announced in March of this year, and closed on December 22.

CIBC paid US$988.65 million in cash - or the same US$1.62 per share on offer to minority shareholders - plus accrued but unpaid dividends to Barclays.

Under its agreement with CIBC, Barclays will have the option to tender all or a portion of its remaining 66.6 million FirstCaribbean shares under the mandatory offer.

Said CIBC president and CEO Gerry McCaughey: "We look forward to participating in the future growth of FirstCaribbean in this dynamic region."

The regional bank, established in 2002, has 780,000 active accounts in 100 branches and banking centres, and offices in 17 countries.

CIBC has more than 11 million personal banking and business customers across Canada, the United States and around the world.

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