Barbados National Bank Officially Dead

BNB Logo

BNB Logo

Republic Bank (RBL) recently rebranded Barbados National Bank (BNB) with the Republic Bank blue. It pained many Barbadians to witness WE bank sold to “others” and it pained further when the BNB brand was dismantled and replaced with RBL’s. If it WAS any consolation, central government and the NIS owned a minority shareholding which gave hope that the holding may have served as an avenue to reclaim the bank at some point in the future. Sad to say, wishful thinking!

The recent offer by RBL to purchase minority shares was successful. According to 187 of the Companies Act because 90% of the offer was taken up, it gives RBL the right to acquire ALL dissenting shares.

The letter attached dated 17 December 2012 confirms RBL’s intention to invoke that right pursuant to the Companies Act. By the end of the year RBL in all likelihood become the100% owner of the former BNB.

Here endeth a national symbol.

Notice to Dissenting RBL Shareholders:

Letter one, two and three.

Notes From a Native Son: Are Cross-border Banks Giving Barbadians Good Service?

Hal Austin

Introduction:
Republic Bank, in a brave move, has announced its intention of taking the former Barbados National Bank in to wholly-owned control. The announcement has led to a muted discussion among some Barbadians, with the professor of economics at Cave Hill, Michael Howard, ‘advising’ local shareholders to sell to the foreign owners.

Apart from the principle of clean hands, the professor’s advice, which also includes keeping the local subsidiary out of the hands of the government, appears to lack any real understanding of banking and its role in intermediation and, even more, economic growth. It is silly advice and should be ignored. Of course, there is no doubt that Republic Bank has behaved impeccably in its dealings both with the Barbados Stock Exchange and investors, but with other unscrupulous operators there is every opportunity in such a move to undermine shareholder value. Is the acquisition going to create value? What about cultural differences, or are they saying Barbadians and Trinidadians share a common culture? What stress and prudence tests have been applied? Retailing banking has reached such a comfortable state in the Caribbean that it is difficult to find common performance measures of success.

We know, for example, that customer satisfaction is not a measure shared by the former BNB, since Republic Bank neither formally informed all its account holders when it took control of the bank, when it changed its name, nor of its intention to buy out minority shareholders. In simple terms, it could not give a hoot what Barbadian shareholders think about their management style.

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Barbados Government Maybe Selling Barbados National Bank Shares Below Premium

Tony Hoyos

Mr. Minister [Chris Sinckler], as individuals own less than 10% of the BNB shares, you are negotiating for all of us on this occasion.  Please do not sellout the Barbadians that have small shareholdings.  There is no reason why you should not seek the best price for the Government and people of Barbados.  At a minimum, seek competitive bids from other entities.  We look forward to your support, in what is your first major action that will impact us.  Thanking you in advance – A. Freeman

 

The resignation of Tony Hoyos from the Board of Directors of the Barbados National Bank (BNB) should should concern Barbadians. Hoyos’ letter of resignation was posted on Peter Boyce’s Facebook Page earlier today.

A full page statement was posted in the local press today by Republic Bank (BNB’s parent company) signalling it will be making an offer to buyout the remaining shareholders in BNB. An article also appeared in the Trinidad press yesterday. Currently Republic Bank Limited (RBL) owns 65.13% of BNB, the government of Barbados 28% and individuals 7% round out the ownership.

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What Buy What BNB What?!?

Submitted by Bush Tea

barbadosnationalbankOK, I admit that Bush Tea is a freak that suffers from strange brain waves and, like some living at a certain place in Black Rock, cannot be relied on to have rational opinions. But cud dear, even in such a state Bush Tea is challenged to understand why we would want to buy back the BNB.

Admittedly, we should never have sold it in the first place. But having sold the thing – and it seems like the buyers were happy, we were happy, everybody was happy – now I am hearing all sorts of big-up bright people talking about finding hundreds of millions of dollars to buy it back?!?

WHAT THE  ????!!!

A fool and his money are soon parted. Here we have a small country that produces NOTHING. Have no natural resources. Facing difficulties ahead – and from the Prime Minister back talking about spending precious money buying something like BNB???

These people really ‘outside’ the fence at Black Rock?

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