Capital Bank is acquired by Mercantil Banco in Panama

 

Capital Bank is acquired by Mercantil Banco in Panama

With this transaction, 100% of the issued and outstanding shares of Capital Bank, as well as 100% of the issued and outstanding shares of Mercantil Banco, S.A. (MBSA, a subsidiary of MHFI) are transferred to a new entity that will be owned by MHFI (80%) and the previous owners of Capital Bank (20%).

Source: La Estrella

It was also announced that the merger of Mercantil Banco, S.A. is contemplated. (MBSA), and Capital Bank, but preparations are being made, before carrying out the corresponding regulatory procedures. For now, both institutions will operate independently and in coordination as far as regulations allow.

More than five months after signing the share purchase agreement, Mercantil Servicios Financieros Internacional, S.A. (MSFI), through its subsidiary Mercantil Holding Financiero Internacional, S.A. (MHFI), this Tuesday, December 6, formalized the purchase of Capital Bank, Inc. and subsidiaries (Capital Bank). In a press conference it was reported that the acquisition was finalized after it recently obtained regulatory authorizations from the Superintendency of Banks of Panama, of the Superintendence of the Stock Market of Panama, the Superintendence of Insurance and Reinsurance of Panama, and to comply with other necessary conditions, procedures and agreements.

The acquisition includes Óptima Compañía de Seguros, S.A. and the brokerage house Capital Assets Consulting, Inc. In the case of the latter, 100% of its shares will be transferred directly to MHFI. The executive president of MHFI, Ignacio Vollmer, announced that the merger of MBSA and Capital is also contemplated. Bank, but while preparations are made for it and before carrying out the corresponding regulatory procedures for the merger, both institutions will operate independently and in coordination to the extent permitted by regulations.

He specified that MBSA and Capital Bank will operate independently while the processes that allow the merger of both entities are developed, so that their respective service channels and products will continue to function as they have been doing.

With the formalization of this acquisition, after having obtained the approval of the different regulatory entities, we ratify our vision of becoming an important benchmark in the market, with a comprehensive offer of products and services that combines banking, fintech, insurance, reinsurance and wealth management, thus creating new growth opportunities for our collaborators, shareholders, clients and other interest groups”, expressed Vollmer.

The Chairman of the Board of Directors of Capital Bank, Moisés Cohen, for his part, considered that it is a highly relevant milestone to add the talent of Capital Bank to the financial capacity and global vision of a multinational such as Mercantil. “We will continue to drive the growth of our businesses, providing a high level of service and an enhanced value proposition to all of our customers,” Cohen said.

With the closing of this purchase, Vollmer, current executive president of MHFI and MBSA, will also simultaneously hold the position of executive president of Capital Bank. While Cohen will continue to be part of the Capital Bank management team as Chairman of its Board of Directors. Mercantil Banco, S.A. is a general license bank, specialized in providing banking services focused on the commercial, personal and international banking segments. As of October 31, 2022, it recorded assets of $1,210 million, deposits of $979 million, equity of $106 million, and retained earnings of $7.2 million. The bank is a subsidiary of the Panamanian holding Mercantil Servicios Financieros Internacional, a financial group with 97 years of experience in the banking, insurance, investment and fintech businesses, with extensive international experience operating in Panama, the United States, Switzerland and Venezuela. It has recently been recognized as "Bank of the Year 2022" in Panama, by the prestigious international publication The Banker, from the British publishing group The Financial Times.

Capital Bank, Inc., for its part, is a Panamanian general license bank founded in 2008 focused on the corporate, construction, real estate and SME segments. It owns 100% of the shares of Capital Factoring & Finance, Inc., Capital Business Center, S.A., Capital International Bank, Inc., Capital Emprendedor, S.A., Capital Trust & Finance, Inc., Capital Leasing and Finance Solution, S.A., Optimal Insurance Company, S.A. and Invest Land & Consulting Group Corp. Capital Bank, Inc. As of the end of October 2022, it recorded assets of $1,647 million, net worth of $157 million, and retained earnings of $3.3 million.