NCB to sell controlling interest in Bermuda bank to Cornerstone

NCB to sell controlling interest in Bermuda bank to Cornerstone

NCB Financial Group Limited (NCBFG) says that it has entered a share purchase agreement with Cornerstone Financial Holdings Limited (Cornerstone) for the sale of 30.20 per cent of its stake in Clarien Group Limited (Clarien Group).

Following the proposed divestment, NCBFG will retain a 19.90 per cent interest in Clarien one of the largest independent integrated financial services organisations in Bermuda.

Existing Clarien shareholders, NCBFG and Edmund Gibbons Limited (EGL), will remain shareholders alongside Cornerstone to take the business forward and have expressed their ongoing support and commitment to the bank, Clarien said in a statement.

“NCB Financial Group Limited’s decision to sell its controlling interest in Clarien Group is a strategic move aligned with our ongoing efforts to reallocate capital effectively,” shared Robert Almeida, CEO of NCBFG in a statement.

Almeida said NCB is pleased to remain a shareholder with a 19.90 per cent stake in Clarien Group Limited and look forward to continuing our collaboration with existing shareholder Edmund Gibbons Limited.

Almeida continued, “This transaction underscores our commitment to optimising our portfolio, while highlighting our confidence in Clarien’s continued success. We are excited about the future prospects and growth opportunities that this will bring, ensuring that our investments align with our long-term goals and the interests of our stakeholders.”

NCBFG emphasised that its reduced ownership interest in the Clarien Group, which it acquired in 2017, will not have a material impact on the future earnings or the asset base of the group after the completion of the sale.

Completion of the transaction between NCBFG and Cornerstone is subject to conditions, including the requisite regulatory approvals.

Mark Myers, chairman of Cornerstone

Once complete, NCBFG will provide transition support to Cornerstone, through its subsidiaries.

Noting the importance of this landmark deal, Mark Myers, Chairman of Cornerstone said in a Clarien statement: “We are truly excited about the tremendous opportunities this strategic partnership brings.”

This move, subject to applicable regulatory approvals, will provide Cornerstone with expanded market opportunities and strengthen the company’s capabilities to meet the evolving demands of the dynamic banking and wealth management landscape.

“By merging Clarien’s strengths and Cornerstone’s management expertise, we are forging a powerful synergy that promises unparalleled benefits to customers, staff, and stakeholder,” Myers added.

Cornerstone Group last year received the greenlight from the Bank of Jamaica to reorganise into, and seek a licence as, a financial holding company.

Its current portfolio companies include Cornerstone USA Inc., CFHL USA Inc., Barita Investments Limited and Cornerstone Trust & Merchant Bank Limited.

  • PublishedJune 13, 2024