SAGICOR GROUP Jamaica’s US$84 million acquisition of RBC Royal Bank (Jamaica) Ltd will give Sagicor an opportunity to expand its banking operations in that Caribbean country, the insurance group has said.
Sagicor Group Jamaica last week announced that the company will be acquiring RBC Royal Bank (Jamaica) Ltd and RBTT Securities Jamaica Ltd from Royal Bank of Canada.
The acquisition, subject to all regulatory approvals, is expected to be finalised in the coming months. The purchase price of the agreement is estimated at US$84 million.
President of Sagicor Financial Corporation Dodridge Miller said in a statement that the acquisition was a “timely initiative which would afford Sagicor Group Jamaica a two-fold opportunity to expand Sagicor’s banking operations in Jamaica, and to provide an enhanced range of services and products for its existing clients”.
Standard and Poor’s Rating Services also issued a January 30 bulletin which indicated that the BB+ ratings on Sagicor Life Inc and BB- ratings on Sagicor Finance Ltd (both Sagicor Group subsidiaries) remain unaffected by the acquisition.
In an earlier statement Richard Byles, president of Sagicor Group Jamaica, said the move to acquire RBC’s Jamaican operations “provides the opportunity to expand Sagicor’s banking footprint, allowing us to serve our customers better”.
He said: “The acquisition of RBC Jamaica is a critical step in fulfilling our vision to build out a bank that is based on customer satisfaction and convenience, and we have confidence in RBC Jamaica’s dedicated employees to help deliver this vision. This transaction allows us the opportunity to have a substantial distribution network and to provide value-added services to our clients through more branches and ATM locations island wide.”
Looking forward on the acquisition’s impact on customers of both institutions Byles said, “Upon closing, Sagicor intends to provide RBC Jamaica customers with the excellent service and product expertise that they are accustomed to, and looks forward to welcoming them to the Sagicor family.”
The sale by RBC of assets to Sagicor forms part of a strategy for RBC to become more competitive in markets it operates in.
Last Friday, the RBC Financial Group released 20 employees from branches across the country.