RBTT Financial Group (RBTT) and Royal Bank of Canada (RBC) have jointly announced an agreement to combine RBC’s Caribbean retail banking operations with RBTT’s, through the acquisition of RBTT for a total purchase price of TT$13.8 billion. Under the agreement, RBTT shareholders will receive per share consideration of TT$40 payable in a combination of cash (60%) and RBC common shares (40%). The number of RBC common shares received by RBTT shareholders is subject to a plus/minus 10% “collar” based on a RBC share price of US$54.42. The RBTT Board of Directors approved the deal and unanimously recommends that RBTT shareholders vote in favour of the transaction. It is expected to close by the middle of 2008 and will be accretive to RBC’s earnings per share in 2008.
