The St. Vincent Co-operative Bank Ltd., commonly known as “Penny Bank”, on Monday said it acknowledges the public statement last Wednesday by La Fleur Bancorp Ltd. expressing its intention to acquire a controlling interest in the bank and indicating its status as a shareholder.
“However, it must be emphasised that, even upon formal registration, La Fleur Bancorp’s shareholding in the Bank remains nominal,” the bank said in a statement.
“While we note the interest expressed, we take this opportunity to reaffirm that any official statements regarding the bank’s position, governance, or ownership structure will be communicated directly through the bank’s authorised channels,” the bank said in a statement from its board of directors.
“This is essential to ensure accuracy and maintain confidence during any process that may have implications for the institution and its stakeholders.”
On Friday, La Fleur Bancorp Ltd. attempted to reassure shareholders and depositors at the 80-year-old Penny Bank, two days after the unknown entity announced that it was trying to acquire “a controlling stake” in the bank.
“We fully understand that Vincentians care about who is behind the financial institutions that serve them,” Kenrick Quashie, founder of La Fleur Bancorp Ltd., told iWitness News.
“We welcome this scrutiny, and we are proud to share that many of our principals are Vincentians with strong roots in the community and in the St. Vincent Co-operative Bank itself,” he said.
Quashie said the principals include former Governor of the Bank of Jamaica, Brian Wynter, grandson of founding shareholder of SVCB, John Jemmot Antrobus; Vincentian businessman and pastor, Martin LaBorde; and, former executive director of Invest SVG, Cleo Huggins, alongside others from Trinidad and Tobago, Canada, and the United States.
However, on Monday, the bank said that La Fleur Bancorp’s statement “reflects solely its own intentions and was not made on behalf of the bank.
“The board reiterates that the decision to sell shares rests solely with individual shareholders, and not with the board,” the statement said.
“It is our understanding that any acquisition of a licensed financial institution is subject to the prior approval of the Eastern Caribbean Central Bank (ECCB). As part of its regulatory process, the ECCB will undertake its own due diligence, including an assessment of the proposed beneficial owners, and will determine their fitness and probity.
“As a general principle, expressions of interest in the Bank are handled discreetly and through established procedures. Where appropriate, the Bank engages with the necessary parties and regulatory bodies, and any developments warranting public communication will be conveyed through our official channels.
“We take this opportunity to assure our customers, shareholders, and the public that the Bank remains financially sound, and it is business as usual across all operations.”
The bank said it is proud of its legacy as a trusted and resilient financial institution, now in its 80th year of service to the people of St. Vincent and the Grenadines.
It noted that it was founded through the contributions of teachers, fishers, small farmers, and other working individuals and has grown steadily over the decades, “remaining firmly rooted in the principles of community, stability, and prudent financial stewardship. Our record of success as an indigenous institution continues to attract the interest of potential investors”.
Eemh? I know whose money would not be going in there.
Reading the previous article on this subject i didn’t get the impression that Mr Quashie was speaking for Penny Bank.
He was informing of his group and what personnel and the vision they will bring to Penny Bank He was not speaking on behalf of Penny Bank.
I seems when a vincentian tries to change the status quo for the good some.in c9ntrol hate to see such move.
This appears to be a hostile takeover from all appearances. The penny bank has been in existence for eighty years and has weathered the financial storms in many forms.