RBTT branch in Half-Way Tree, St Andrew. - File

RBTT Financial Holdings Limited has missed its January deadline to have shareholders pronounce on the pending acquisition of its retail banking arm by Royal Bank of Canada.

RBTT chairman Peter July said the group was still finalising the director's circular and other documentation relating to the TT$13.8 billion (US$2.2 billion) deal for issue to investors.

"This process has taken longer than anticipated," said July, "but it is now close to completion."

Meantime, the 18 per cent premium on the offer price has now eroded to 14.7 per cent on the Trinidad stock market.

July's advisory was issued alongside the financial group's latest accounts, which recorded flat performance over its nine-month period ending December 31, 2007.

In fact, net profit dipped marginally by 0.4 per cent to US$108 million, while the decline for the third quarter was a more pronounced 2.0 per cent, down to US$34 million.

The banking arm, however, recorded 32 per cent better business over the nine months, while its investment banking and trust and asset management segments reflected a downturn, which the company says is expected to continue into the fourth quarter.

The decline in the latter business segments is said to reflect soft market conditions resulting in a drop of 17 per cent and 19 per cent, respectively, year over year.

July did not signal a new meeting date for shareholder approval of the RBC deal, saying only that it would be announced shortly.

Geographic segmentation

Royal Bank in a friendly takeover bid launched last October has offered TT$40 per share to shareholders in an all-out cash and shares bid for full control of RBTT Bank - payable in a combination of 60 per cent cash and 40 per cent in swapped RBC common shares.

RBTT's board has already recommended the offer to shareholders. The director's circular will merely formalise its position while highlighting the selling points of the deal, which is subject to close in mid-2008.

At the launch of the offer, the bid price was at an 18 per cent premium on the prevailing RBTT stock price on the Trinidad Exchange. RBTT has since risen, trading last at TT$34.86 per share, which reduces the premium on the RBC offer to less than 15 per cent. In Jamaica, the price is unchanged at J$400 per share.

The merger of RBTT's banking operations with RBC's regional operations will create a 130 branch pan-Caribbean operation with just under US$14 billion of assets and more than 1.6 million clients.

The group's geographic segmentation shows Trinidad and Tobago, the base of its operation, continuing to outperform other markets, contributing approximately 60 per cent or US$86 million to profit, while Jamaica's contribution was US$12.6 million or 9.0 per cent.

sabrina.gordon@gleanerjm.com

RBTT Financial Holdings

Nine-Month Dec. 31, 2007

Net revenue	US$376.9 million
Operating
profit	US$143.5 million
Net profit	US$108.3 million
EPS	US$0.31
Total assets	US$8.1 billion
Equity	US$773 million