Proven acquires another bank

Proven Investments Limited is set to surpass US$1 billion in total assets following the acquisition of a Cayman bank, which still requires regulatory approval.

Proven on Thursday announced that it acquired Fidelity Bank Cayman Limited with US$350 million in assets, which would build on its total holdings of US$650 at December 2020.

The price of the acquisition was not disclosed.

It took 10 years since Proven’s market début as a start-up for it to hit the US$1-billion milestone. The company mainly invests in investment-grade financial entities, but has also gotten deeper into real estate in recent years, with each M&A deal and development project pushing its book value higher.

“We expect our equity to touch US$200 million shortly,” said CEO Christopher Williams.

The acquisition of the bank comes on the heels of Proven Investment’s most recent equity raise of US$30 million through an additional public offering of shares on the Jamaica Stock Exchange.

Proven entered into a share purchase agreement with Fidelity Bank & Trust International Limited, a company incorporated in The Bahamas, to acquire the entire issued shares of Fidelity Bank Cayman. The deal requires regulatory approval from the Cayman Islands Monetary Authority.

“This is not only consistent with our strategic focus, but supports our outlook of the impending buoyancy of the Caribbean economies on the other side of the coronavirus pandemic,” said Johann Heaven, head of Proven’s banking and wealth division, of the new acquisition.

Fidelity Bank Cayman provides services to residents and non-residents. It operates two branches in Grand Cayman.

In a joint release on the transaction, Fidelity Bank & Trust International CEO Gowon Bowe said Fidelity Bank Cayman has a long history and would work with Proven towards regulatory approval, closing the deal, and facilitating a seamless transition to the new ownership.

The deal will extend Proven’s portfolio of foreign holdings, which includes real estate and financial sector holdings in Cayman and banking operations in St Lucia.

The Fidelity transaction comes sharply on the heels of a deal at the end of December in which Proven acquired the 50.5 per cent interest held by Massy Holdings in Roberts Manufacturing Company Limited, a manufacturer of animal nutrition, edible fats and oils in Barbados. Roberts supplies diversified consumer goods to markets in the Caribbean, Central America, and the United States. That deal is also subject to regulatory approval.

steven.jackson@gleanerjm.com