The shareholders of RBTT Financial Holdings have voted in favor of the proposed amalgamation of RBTT with RBC Holdings Trinidad & Tobago, a subsidiary of Royal Bank of Canada.
RBTT and Royal Bank of Canada (RBC) have announced an agreement in October 2007, for RBC to acquire RBTT for a total purchase price of approximately $2.2 billion at exchange rates as of September 28, 2007.
Following the completion of the amalgamation, RBTT Financial Holdings and RBC Holdings (Trinidad & Tobago) will amalgamate and continue as a wholly owned indirect subsidiary of RBC.
RBTT shareholders will receive total per share consideration in the amount of approximately TT$40 which will be payable in a combination of cash approximately 60% and RBC common shares of approximately 40%.
For each RBTT ordinary share held, shareholders will receive TT$24 in cash and a fractional number of RBC common shares equal to an exchange ratio based on the US dollar equivalent of TT$16. The number of RBC common shares to be received by RBTT shareholders is subject to a plus or minus 10% ‘collar’ based on an RBC share price of $54.42.
The closing of the transaction is subject to customary conditions, including the receipt of regulatory approvals. The transaction is expected to close in May or June 2008.