Royal Bank of Canada to buy RBTT for $2.2 bln
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Tue, 02 Oct 2007 13:15:08 GMT |
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TORONTO (Reuters) - Royal Bank of Canada said on Tuesday it will buy Caribbean-owned banking and financial services group RBTT Financial Group for a total of about $2.2 billion.RBTT shareholders will receive per share consideration of about $6.33, payable in a combination that's 60 percent in cash, and 40 percent in RBC common shares.RBC said the deal, which is expected to close by the middle of 2008, will increase its earnings per share in 2008.The offer represents an 18-percent premium on the closing price of RBTT shares on September 28, and a 27-percent premium to its average share price of about $4.98 over the past 12 months.RBTT said its board of directors approved the deal and unanimously recommended that shareholders vote in its favor.RBC said its current head of Caribbean banking, Suresh Sookoo, will become CEO of RBC's Caribbean retail banking operations once the two operations are integrated.With more than US$13.7 billion in assets, the combined operations will have 130 branches across the Caribbean employing more than 6,900 people.RBC's expanded Caribbean retail banking operations will be headquartered in Port of Spain, the capital city of Trinidad and Tobago.The deal is subject to approval by regulators and RBTT shareholders.
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