Bank of Baroda (BoB) has agreed to sell its Trinidad & Tobago operations to ANSA Merchant Bank, a subsidiary of ANSA McAL, a conglomerate based in the Caribbean. BoB's operations in Trinidad & Tobago (T&T) include three retail branches in Port of Spain, San Fernando and Chaguanas. According to a source, the transaction size is estimated at Rs 175-200 crore.
BoB had established its operations in Trinidad & Tobago in 2007 and operates as one of only eight licensed banks there. The bank services the retail, corporate, SMEs, mortgage, and forex sector in the country. BoB indicated in a statement that it has approved the sale as a part of the rationalisation of its international operations. "Bank of Baroda has signed the binding share purchase agreement for sale of business of Bank of Baroda (Trinidad & Tobago) with ANSA Merchant Bank subject to approval from host country regulator - Central Bank of Trinidad & Tobago," the bank said in an exchange notification.
A source told FE that BoB had likely held talks with other players also before finalising the deal. "Most of the public sector banks have been looking at rationalisation of their international operations. ANSA McAL was interested in acquiring the international operations of an Indian bank in the backdrop of the rationalisation. Bank of Baroda is likely to have spoken to a few other players and went through the process over the last few months. The transaction is estimated at about Rs 175-200 crore," a source told FE. In December 2018, the bank also invited request for proposal from investment bankers for divestment of its 100% stake in a subsidiary in Guyana, a statement indicated.
"ANSA Merchant Bank is enthusiastic about the prospects for the future and for the many exciting opportunities that this acquisition will offer our clients and the people of Trinidad & Tobago," said A Norman Sabga, executive chairman of ANSA McAL.
ANSA McAL is a Trinidad & Tobago conglomerate with operations in the Caribbean, Europe and North America in industries such as financial services, beverages, pharmaceuticals and automotive distribution, construction, manufacturing, real estate, media and retail, among others. ANSA McAL and ANSA Merchant Bank are both listed on the Trinidad and Tobago Stock Exchange.
Singhi Advisors along with their Latin American partner BroadSpan Capital advised ANSA Merchant Bank on this transaction. BoB's shares ended Thursday's trading session up 2.35% on the BSE.