The Boards of Directors of First Life and Knutsford Capital Merchant Bank announced that an agreement for the acquisition of KCMB by First Life has been achieved. The transaction has received the necessary regulatory approval.
First Life intends to merge KCMB with its wholly owned subsidiary, Pan Caribbean Merchant Bank Ltd. during 2000 to create a larger and better capitalized institution. For the recent financial year ended December 1999, PCMB reported audited pre-tax profits of $55.2 million while KCMB’s audited accounts reflected pre-tax profits of $14 million.
On First Life’s behalf, Richard Byles stated that First Life was excited about the future prospects of a more substantial merchant bank and its positive impact on the company’s earnings. PCMB and KCMB are very similar in many respects, and we expect the merger to go smoothly and synergistic value to be created.”
Michael McMorris, KCMB’s Managing Director indicated that his Board was pleased that the many clients who led to KCMB’s success since its establishment in 1994, would be served by a financial group with the same commitments to service and safety. “The merger of the assets and human resources of the two banks will create the platform for a truly 21st century service business,with the financial strength and intelligence to give our clients superior choices in achieving their investment and financing goals”, the company said.
Once amalgamated the new institution will have a consolidated equity base in excess of $190 million and over $7 billion in assets under management.
