CIBC to divest 91.7% of CIBC Caribbean for $1.8bn
CM•CIBC will sell its 91.7% stake in CIBC Caribbean Bank to Butterfield for $1.8bn, comprising $1.09bn cash and $703m in Butterfield shares priced at a $55.66 VWAP. Post-transaction, CIBC is set to hold roughly 22% of the enlarged $29bn-asset group, with closing targeted in H1 2027 pending approvals.
1. Transaction Details
CIBC has entered a definitive agreement to sell its 91.7% interest in CIBC Caribbean Bank to Butterfield for $1.8bn, split between $1.09bn in cash and $703m in newly issued Butterfield shares priced at the bank’s 10-day VWAP of $55.66 on May 27, 2026. The deal also includes Butterfield’s acquisition of CIBC Investments (Cayman), consolidating regional operations under one group.
2. Post-Deal Ownership Structure
Following the asset acquisition, Butterfield will launch a mandatory takeover bid for the remaining 8.3% of CIBC Caribbean shares held by minority investors, offering the same cash-and-share mix. If minority shareholders accept, they will collectively own about 2% of Butterfield, while CIBC’s residual stake in the combined entity will be approximately 22%.
3. Strategic Impact and Timeline
The transaction will create a combined banking and wealth management group with around $29bn in assets, bolstering corporate, consumer and cross-border services and funding enhanced digital banking and technology investments. Completion is expected in the first half of 2027, subject to customary regulatory clearances, with Butterfield’s shares remaining listed on the NYSE and Bermuda Stock Exchange and potential secondary listings in the Caribbean.
