The Fidelity Group of Companies yesterday unveiled a restructuring that has seen its BISX-listed retail bank acquire the 50 per cent stake its majority shareholder held in an affiliated company.
Fidelity Bank (Bahamas) has acquired the 50 per cent stake that its parent, Fidelity Bank & Trust International, held in the group’s investment banking business, Royal Fidelity Merchant Bank & Trust.
This means Fidelity Bank (Bahamas) is now a 50/50 joint venture partner in its investment banking affiliate, the other 50 per cent being held by Royal Bank of Canada (RBC).
Royal Fidelity Merchant Bank & Trust, which has an office in Barbados, is involved in asset management and administration, fiduciary services, and capital markets transactions.
The deal appears designed to integrate Royal Fidelity Merchant Bank & Trust more closely with the BISX-listed retail bank, and have the two work together.
It is likely that the move is designed to broaden Fidelity Bank (Bahamas) product offering, giving it access to the investment bank’s investments, pensions and wealth management products.
Anwer Sunderji, Fidelity Bank (Bahamas) chief executive, said: “Royal Fidelity Merchant Bank & Trust broadens the bank’s retail product offerings, diversifies its earnings and allows it to participate in new segments of the economy.
“It is expected to make a positive contribution to earnings. The effective date for the acquisition is July 1, 2013.”
He added that Royal Fidelity Merchant Bank & Trust, will continue to operate independently as a joint venture entity, with Royal Bank having 50% of the equity and sharing board control.