Canadian Imperial Bank of Commerce (CIBC) agreed to sell its 91.7% stake in CIBC Caribbean to the Bank of N.T. Butterfield & Son. The transaction is valued at approximately $1.6 billion. CIBC will receive $1 billion in cash. The deal also includes 52.1 million Butterfield shares. This equity grants CIBC a 22% stake in the combined company.
The sale is expected to close in the first half of 2027, pending regulatory and shareholder approvals. This move follows several previous unsuccessful attempts to divest the Caribbean business. CIBC will reallocate the capital to focus on its North American growth priorities.
CIBC also announced a normal course issuer bid to repurchase up to 30 million common shares. This buyback represents approximately 3.3% of the bank's outstanding shares.