(RTTNews) - CIBC (CM, CM.TO) said GNB Financial Group Limited is acquiring 66.73 percent of CIBC FirstCaribbean shares for total consideration of $797 million. The total consideration is comprised of approximately $200 million in cash and secured financing provided by CIBC for the remainder. Following the close of the transaction, CIBC will remain a 24.9 percent minority shareholder of FirstCaribbean.
CIBC's common equity Tier 1 capital ratio is expected to improve by over 40 bps on closing. The transaction is expected to result in an after-tax loss of approximately C$135 million that will be recognized in the fourth quarter of 2019. Upon closing, CIBC will realize accumulated foreign currency translation gains relating to FirstCaribbean, estimated to be approximately C$280 million.
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