CIBC says the sale of a big portion of its majority stake in CIBC FirstCaribbean to GNB Monetary Group Ltd. is not going to go forward after it didn’t obtain approval from regulators.
The Canadian financial institution had introduced in November that it will promote a controlling stake within the financial institution for $797 million US.
GNB Monetary is wholly owned by Starmites Corp., the monetary holding firm of the Gilinski Group, which has about $15 billion US in mixed property.
Beneath the proposed deal, GNB would have owned 66.7 per cent of FirstCaribbean’s fairness, whereas CIBC would have retained 24.9 per cent.
FirstCaribbean operates in 16 international locations within the area and affords a spread of economic providers together with company, retail and enterprise banking in addition to wealth administration.
It has 2,900 workers in 64 branches and workplaces.
In a press release, the financial institution stated that regulators that govern FirstCaribbean nixed the deal, not entities in Canada which have authority over CIBC.
“Whereas this transaction would have supported FirstCaribbean’s long-term development prospects, it’s only a technique of supporting development for our financial institution going ahead,” FirstCaribbean CEO Colette Delaney stated in a press release.
“CIBC has held a majority possession stake in FirstCaribbean for a lot of years, and there exists a wonderful working relationship with a shared deal with assembly the wants of our purchasers.”