In making the announcement, managing director, David Dulal-Whiteway advised that although the Group was satisfied with its existing shareholding in BNB, it had been willing to acquire the additional shares since the Government was desirous of selling.
A statement from Republic Bank's managing director David Dulal-Whiteway said the bank was unable to complete negotiations to purchase the 17 million Barbados National Bank (BNB) shares held by the Government of Barbados. In the statement, Dulal-Whiteway said: "Following discussions with the Government, both parties were unable to agree on an appropriate transaction price and as a result, the Group would not be proceeding with the transaction at this time."
Dulal-Whiteway reconfirmed Republic Bank's commitment to Barbados and advised that the Bank will continue its strong support of the Barbadian small business sector and its local investment in network upgrades, branch expansion and community activities which are designed to fortify the Barbadian social sector. Republic Bank currently has controlling interest in BNB with 65.13 per cent of the shares.
Republic announced that it was pursuing ownership of 100 per cent of BNB after the close of trading on October 22. In the one month between October 25 and November 26, Republic Bank's share price jumped by 11 per cent from $68.01 to $75.50-pushing the bank's market capitalisation up by $1.2 billion.