The Antigua and Barbuda government says it is prepared to hold direct talks with Scotiabank over the acquisition of its local branch here after indicating that the Trinidad and Tobago-based financial institution was seeking as much as “300 per cent” more than the sale price.
Prime Minister Gaston Browne had earlier this month indicated that his administrative had received ‘positive” feedback to a proposal that would allow it to own at least 40 per cent of the Scotiabank branch here, which is being sold as part of several branches in the Caribbean to the Trinidad and Tobago-based financial institution.
But speaking on a radio programme here, Browne said while the Republic Financial Holdings Limited (RFHL) had agreed “in principle to the 40 per cent shares for Antigua and Barbuda, and when I say Antigua and Barbuda, a consortium of banks or the banks and the government of Antigua and Barbuda.
“However, we are not quite happy with the maths. You know they come with the sophisticated talks, so for example the value that we understand the bank to have they want to price the value of the bank at about 300 per cent of its value and we have said to them we are not accepting that”.
Browne told radio listeners that his administration is prepared to “pay whatever you paid for it that is going to be the value that we will accept.”
Last November, the RFHL announced that it was seeking to acquire Scotiabank operations in several Caribbean countries.
Antigua and Barbuda and Guyana had initially expressed reservations about the proposed acquisition, with St. John’s indicating that it would not be issuing a vesting order to facilitate the move.
The RFHL statement said that the banks being acquired are located in Guyana, St. Maarten, Anguilla, Antigua and Barbuda, Dominica, Grenada, St. Kitts and Nevis, St. Lucia, and St. Vincent and the Grenadines.
It said that the purchase price is US$123 million, which represents US$25 million consideration for total shareholding of Scotiabank Anguilla Limited; and a premium of US$98 million over net asset value for operations in the remaining eight countries.
Antigua and Barbuda has said that it wants assurances that local banks will be given priority to purchase Scotiabank’s operations on the island and that local persons’ investments and savings will be protected.
Browne told radio listeners that if RHFL is prepared to accept the offer of Antigua and Barbuda government paying “whatever they pay Scotiabank Canada for the bank…then I think we definitely have a deal.
“If they do not then this matter becomes a situation where we say you know what we are not having any deal with you , we will go and buy the bank ourselves, we will go and talk to Scotiabank ourselves”.
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If you can’t afford the asking price then you can’t afford to buy!…simple!!.
How can you go and tell the purchaser you want to buy a portion of their goods for the price they paid??..
RFHL should have said 1000%!!. Ah nuff GOAB nuff!!.
Can you imagine??..you go ah bread shap.You buy de last bread pan shelf an wan next person come seh dem want half you bread fu de price you pay, otherwise dem naar let you out de shap??!!!.
Well mah know dat by time me done wid dem ah dacktah dem wudda seek fu bread Allergy!!.
You love to display your ignorance of things every time. Just because you need to oppose whatever it is the PM does. Good or bad.
Let me see if I can refresh your memory. WIOC asking price was $81million. The UPP could not bring up that amount of money so they try to get Venezuela to buy it and than give them a loan and they would in turn buy 25%. And with the already 24% they would be minority shareholder of 49% while Venezuela would call the shot. With what we see now it would mean WIOC would be closed. Cause Venezuela cannot ship oil because of the US Sanctions. In come the financial wizard and before you know it the price is down to $30million. And that is not yet done. He then turns around gets a bridging loan from the bank and turns around and sell 49% for more than $30millions. Pays back the bank, takes out the lands assets out of the company and gives that to National Housing. So you see people like you and the UPP have no vision. You always see mountains and cannot imagine to do anything. But his government is a can do government and were there is a will he will find a way. Our World Boss. Gaston “Blessed” Browne.
This Alex N De-Azle guy is either the biggest Jack-Ass on the planet, or simple mentally retarded. His hatred for Gaston is such, that nothing Gaston does can be right or reasonable. Here we have a Prime Minister looking out for the best interest of the people of Antigua and Barbuda, and you would rather the entire country suffer, if it seems that Gaston would get a feather in his cap. You ought to seek professional help. And fasssssst!
Too late. He is too far gone. Only Jesus can save him.
I have read your comments from time to time and have yet to read a positive review of any initiative Gaston has postulated. Not really a big fan of his..may be I find him a bit abrasive…BUT, I can quickly admit he has some sound ideas. After all he dealt with the WIOC matter quite skillfully. Not the politicking about he got them down to 30MIL as oppose the the UPP figure, but how he was able to purchase and manipulate the deal without using tax payers funds. Masterful. Will you be able to offer some kind words if he ever gets to broker a LIAT deal and a Scotia Bank deal? After all, thos two entities will greatly benefit Antigua and Antiguans. Don’t you think? Don’t know your rational, but you seem very BITTER or just down right BADMINDED when it come to anything to do with Gaston…
Alex is a proud Grammarian. Sempir Virens!
Oops! Mr PM did RFHL say that Scotiabank made a computational error in the “premium of US$98 million over net asset value for operations in the remaining eight countries?” Or is RFHL in its “sophisticated talks” now using a different methodology that includes new factors to arrive at a value of the bank at “about 300 percent of its value?” This and the LIAT matter are most intriguing and instructive.Let the buyer be knowledgeable! (et qui emit sciens).
Mr PM take the bank over like what Chavez would have done.
Republic has a better price for Scotia assets as it is buying ALL of the OECS assets of Scotia. That is why Republic got a much better price. Gaston wants to buy just Antigua alone but at the same time get the benefit of the price savings that Republic has achieved through the total purchase. If Gaston abandons Republic’s offer and approaches Scotia directly, of course Scotia will not discount the price for him as they did for Republic. He only wants to buy a small fraction of their operations. Scotia will demand a fair market value price for its Antigua operations alone. Buying in bulk always gives a much better price as has been given to Republic. Why should Gaston get the price benefit of Republic’s overall purchase?
Question Why not? The entire deal still depends on Antigua giving them a vesting order. And Gaston knows how to play hardball with these type of guys. If Scotia Bank Antigua can make $37million profit in one year than they should not worry about the price. They will still be majority shareholder and earn back their money very quickly. What I want to know is which branch has the best performance. And I wouldn’t be surprise if it is the Antigua branch.
Exactly right. Chavez is gone and Venezuela is in ruins. Enough said.
I think Antigua News Room should no longer allow readers to use pseudonyms when leaving their comments. This will help to expose the ones who are constantly leaving ”unintelligent” comments. Anyone who insist on carrying on in their stupidity should be exposed as such.
THE WORLD BOSS BEST IN THE WORLD.
NO ONE IS TOUCHING THE HYPOCRISY OF THE OBSERVER RADIO / SNAKEPIT / UPP . Their strongest ACTIVIST is on Her way to JAIL (1735) for stealing. What Mr. Pompey and the others view of such a Person. The Observer Radio/Snakepit / UPP have lost a lot of CREDIBILITY. How can a Company permit Someone to work for Them in such a position knowingly that this Person has 5 CRIMINAL RECORDS. Also went to PRISON for 18 MONTHS. Let Us start a discussion. SHAME SHAME SHAME. Do not listen to Observer Radio anymore.
I’m wondering how come ANR didn’t report it. Then again they never reported Lamin Newton’s view on the University.
Gaston Browne is a mere talker.He talks too darn much.Stop with all this yapping and get things done.Let us as Antiguans and Barbudans begin to see the end of something,anything. LIAT,Scotia Bank,Digicel,Five Islands UWI Campus.Where the heck are you going to get the funds to purchase all those things.You broke,you broke,you broke.We the people would be indebted into perpetuity.You cannot even pay your poor and elderly their monthly pensions.
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