Bermuda Commercial Bank has new owners

April 16, 2010 3:21 PM

Bermuda-based Permanent Investments Limited has become the controlling shareholder of Bermuda Commercial Bank.

The sale comes after a four-year search to find a new owner. Permanent has acquired the entire shareholding interest of First Curacao International Bank in BCB, representing approximately 54 per cent of the currently issued and outstanding BCB common shares.

BCB and Permanent have entered into an agreement pursuant to which Permanent will make a cash offer to acquire all the remaining issued and outstanding common shares of BCB by way of a tender offer.

Under the offer, Permanent will make an offer to acquire the remaining BCB common shares that they do not already own, for $9.88 per share. The offer price for the common shares of BCB represents a 27 per cent premium over the last traded price.

Michael Collier, Warren McLeland and Eric Stobart have been added to the board of directors. Anthony Cijntje, Geomaly Martes and Michael Cranfield resigned from the BCB board.

Permanent Investments Limited is a Bermuda exempted company that is owned and funded by a group of four investment funds and investment companies associated with Michael Collier and the new directors.

Horst Finkbeiner, BCB COO, told the Bermuda Sun: "We've spoken to well over 50 or 60 potential buyers - we're pleased to have completed the sale."

He said it was positive that the new buyers are from Bermuda.

"When you look at who the new directors are - they are very solid experienced bankers who are joining the board. That's a tremendous thing to have."

Mr. Finkbeiner couldn't release details of the new direction the bank was going to take but said "we'll be reengaging into the local marketplace. Looking at the kind of services that our clients have been demanding and would like to see us do. Overall, we'll become a far more competitive bank than we have been in the past."

He said BCB would still be catering to commercial and corporate clients rather than retail customers.

Mr. Collier, a former president and CEO of Butterfield Bank, told us: "While everyone seems to be concerned about what's going on in Bermuda, the Permanent Group see Bermuda as being very attractive for doing business."

He added: "The rules and regulations that exist for banking, trust and related financial services in Bermuda are good.

"Yes, they have been tightened in light of world events as late, but that too is for the regulators and others to have done.

"We will now to be able to build Bermuda Commercial Bank into a more significant company."

(Source: Bermuda Sun)

16 April 2010