The Bank of N.T. Butterfield & Son Limited (“Butterfield”) today announced that it has agreed to sell its minority ownership position in Butterfield Fulcrum to a new company founded by fund industry executives Tim Calveley and Glenn Henderson and private equity firm, BV Investment Partners. Butterfield Fulcrum will operate as a subsidiary of the new company.
Butterfield will continue to provide Butterfield Fulcrum and its clients with commercial banking, foreign exchange and custody services.
Butterfield Fulcrum was established in 2008 through the merger of Butterfield Fund Services and the Fulcrum Group.
Through this transaction, Butterfield will fully divest itself of its minority ownership stake in Butterfield Fulcrum. The transaction is expected to close during the first quarter of 2011, subject to regulatory approvals.
Proceeds from the sale will result in a distribution to holders of the Bank’s Contingent Value Convertible Preference Shares, estimated at $0.39 to $0.41 per share. Details of the actual payment will be disclosed in Butterfield’s first quarter 2011 financial results.