The Bank of Bermuda on Friday confirmed it had been able to acquire enough shares in Bermuda Home Ltd. to be able to buy the company outright.

The bank stated that over three-quarters of Bermuda Home's shareholders -- representing 90 percent of the shares -- had approved the acquisition at $15.25 a share.

Under the Companies Act, the bank is entitled to purchase the remaining common and preferred shares, Bank of Bermuda senior vice president Alan Richardson said. The bank plans to close the offer on April 8 and is encouraging the remaining hold outs to accept the offer, he said.

A bank spokeswoman said the company is still in negotiations with Bermuda Realty management over the purchase of the Bermuda Home subsidiary.

The Bank of Bermuda offer of $15.25 per share values Bermuda Home at $83.8 million representing a 38.6 percent premium on the outstanding common shares and 22 percent on the preferred shares.

The bank is buying the company at an estimated 7.86 times earnings based on projections. The company's book value per share is about $12.70. A $15.25 price represents 1.2 times book.

The bank already owned about 25 percent of the common stock when it made the bid for Bermuda Home last year. It had an agreement to purchase another 33 percent from directors and officers, giving it in principle 58 percent control.

The bank also holds about 26 percent of the preferred stock and had an agreement to purchase 28 percent from directors and officers.

The bank said Bermuda Home would be a bank subsidiary that continues to function independently, but with expanded operations, and new products and services. The bank's mortgage and some lending activities will also be transferred to Bermuda Home.

According to Bermuda Home's consolidated statement of income for the first six months of this financial year, at September 30 the directors and executive officers held a total of 1,042,143 common shares and 165,351 preferred shares.

Alan Richardson