VMIL Enters Into Definitive Agreement to Acquire Republic Funds (Barbados) Incorporated

• The VM Investments Limited (VMIL) has entered into a definitive agreement with Republic Bank (Barbados) Limited (RBBL) to acquire 100% of the issued and authorized common shares in Republic Funds (Barbados) Incorporated (RFI). RFI is the owner and operator of the Republic Bank Barbados family of Mutual Funds, comprising Republic Property Fund, Republic Income Fund and Republic Capital Growth Fund. The transaction completion is, however, subject to the approval of regulators in both Barbados and Jamaica. 
• Rezworth Burchenson, CEO of VMIL has said that VMIL is in an unprecedented growth mode, and that the company would continue to be keen on strategically expanding its footprint throughout the region. The acquisition of RFI is aligned with its robust strategic plan for the business. 
• RBBL, in a strategic decision, has chosen to concentrate on its core business of commercial banking. The management of mutual funds in Barbados no longer fits into the bank’s core business strategy. 
• While awaiting regulatory approval in Barbados and Jamaica, RBBL will continue to be the owner of RFI and until the acquisition process is completed, RBBL will also remain the manager of the respective mutual funds. The required regulatory approval process is expected to be completed within approximately six to nine months but could be extended depending on various factors. 
• This acquisition will allow VMIL to expand its reach, regional footprint, and facilitate revenue diversification. It should result in stronger revenue and greater profitability for the company.

(Source: VMIL & NCBCM Research)