Bermuda Commercial Bank Ltd. (BCB) yesterday ended a four-year search for a buyer as it sold a controlling interest to Permanent Investment Holdings Ltd. for around $34.2 million.

The deal is a boost for BCB shareholders who will be offered $9.88 each for their shares in a tender offer — a 27 percent premium on Wednesday's closing price of $7.75.

Permanent, which is owned and funded by four investment funds and companies — three of them overseas entities — yesterday bought 3.46 million shares, which gives it a 54 percent stake in BCB.

BCB chief operating officer Horst Finkbeiner said there were no plans to make any redundancies among the bank's 38 staff as a result of the takeover.

Bermudian Michael Collier, chairman of Belco owner the Ascendant Group Ltd. and former chief executive officer of Butterfield Bank, will join the board as a Permanent nominee.

Other incoming directors are Warren McLeland, a former managing director of Chase Manhattan Bank, and Eric Stobart, a former managing director and finance director of Hill Samuel Bank.

Finance Minister Paula Cox welcomed the news and said the deal could lead to greater competition in the Island's banking sector, to the potential benefit of consumers.

Dutch millionaire John Deuss was once chairman of the bank and owner of its former major shareholder, the First Curaçao International Bank (FCIB), but he stepped down in October 2006 after Dutch authorities launched a money-laundering investigation into FCIB. Permanent bought FCIB's entire BCB stake yesterday.

The bank said details of the tender offer would be mailed to BCB shareholders no later than April 30.