RBC (Royal Bank of Canada) has completed its TT$13.7 billion buyout of RBTT (Royal Bank of Trinidad and Tobago) Financial Holdings. A joint RBC/RBTT statement said yesterday RBTT Group CEO Suresh Sookoo and RBC's head of Caribbean banking Ross McDonald will share responsibility for leading a smooth transition as the new banking entity decides how to best use its management.
The takeover of RBTT, which marks the return of RBC to Trinidad and Tobago after 21 years, comes amid concerns by Government and the private sector that the injection of cash into the local financial system will play havoc with an already escalating inflation rate.RBTT shareholders and stockbrokers have also expressed concern that minority stockholders will not get the best opportunity to cash in their RBTT shares.
A new worry has also surfaced that some top management at RBTT may be retrenched following the amalgamation between RBTT and RBC's subsidiary company, RBC Holdings (Trinidad), which will be headquartered in Port of Spain.
Although RBTT has received regulatory approvals in Trinidad, Jamaica and Barbados related to its acquisition, it will take several months for the transition to be completed.
"Senior management from both organisations will be integrated and Sookoo will become CEO of RBC's Caribbean retail banking operations, following the successful integration of the two operations," the statement added.
Prime Minister Patrick Manning met Sookoo, RBC Group Head, International Banking and Insurance, James Westlake, and RBC Senior Vice President International Banking, Rod Pennycook, yesterday.
Last Friday, Finance Minister Karen Nunez-Tesheira announced that Government would immediately issue bonds to mop up the $4.7 billion in cash RBTT shareholders are expected to receive as a measure to alleviate rising inflationary pressures.
It could not be confirmed yesterday if the bonds were available, as Nunez-Tesheira and Central Bank Governor Ewart Williams were both said to be out of the country.
RBTT shareholders are getting both cash and RBC shares for their stock in the local bank, following a majority vote to approve the takeover on March 26 at the Hilton Trinidad.
Speaking about the future prospects of the deal, Westlake said, "The completion of this transaction affirms RBC's position in the Caribbean region and advances our strategy to continue to grow our banking operations outside Canada."
Peter July, RBTT Group chairman, added, "The combination of these two organisations is all about growth and expansion, which creates new opportunities for our stakeholders. It has brought enhanced value to our shareholders who, in addition to receiving a premium for their RBTT shares, can now invest in one of the most stable and successful banking entities in the world."
