Scotiabank (Belize) Limited (SBL) will be bought by Caribbean Investment Holdings Limited (CIHL) for a purchase price of US$30.5 million.
Caribbean Investments Holdings Limited made the announcement today, June 22, when it shared that the agreement for the bank’s purchase was made with Scotiabank Caribbean Holdings Ltd., a subsidiary of the Bank of Nova Scotia.
SBL, which has been in Belize since1968, represents Scotiabank’s banking and currently operates nine branches and 21 automated teller machines (ATMs). SBL offers a complete range of retail and commercial banking services across Belize, including online banking and electronic cash management.
For the financial year ended 31 October 2019, SBL recorded a profit of US$5.30 million, and revenue of US$36.52 million. Up to that period, it had assets of US$389.9.
“As a consequence of the Acquisition, the Group’s banking operations in Belize will be significantly expanded.”– CIHL Company Secretary Philip Osborne,
The acquisition is subject to regulatory approval and customary closing conditions.
Under the terms of the agreement, CIHL will acquire all of BNS’s licenced banking operations in Belize through the acquisition of the entire issued share capital of SBL.
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.
Caribbean Investment Holdings Limited is a parent holding company with no independent business operations or assets other than its investments in its subsidiaries. CIHL’s subsidiary the Belize Bank Limited is incorporated and based in Belize and provides financial services and lends to domestic clients.
CIHL in a release said it has been exploring potential acquisition opportunities in line with its previously disclosed expansion strategy.
Philip Osborne, CIHL Company Secretary, said, “The Board of CIHL believe that the purchase of SBL is an opportunity for the Group to expand its existing banking operations in Belize and that there are synergies between the Group’s current banking operations and the operations of SBL. As a consequence of the Acquisition, the Group’s banking operations in Belize will be significantly expanded. The Acquisition is expected to be immediately earnings enhancing to CIHL.”