Blue Hill Advisors and Other Leading Bank Investors Reiterate Commitment to Superior Cash Offer for Territorial Bancorp
Blue Hill Advisors and other leading bank investors have reaffirmed their $12.00 per share cash offer for Territorial Bancorp Inc. (NASDAQ: TBNK). This offer represents a 29% premium to Territorial's closing price on September 12, 2024, and a 70% premium to its price before the Hope Bancorp merger announcement. The proposal allows up to 30% of existing shareholders to retain their stakes.
Key aspects of the offer include:
- Preserving Territorial as a Hawaii-focused institution
- Maintaining local leadership
- Providing opportunity for profitability and growth
- Creating jobs in Hawaii
- Allowing participating shareholders to benefit from potential value creation
The investors urge Territorial shareholders to support their proposal, which they believe offers superior value compared to the planned merger with Hope Bancorp (NASDAQ: HOPE).
Blue Hill Advisors e altri importanti investitori bancari hanno confermato la loro offerta in contante di $12.00 per azione per Territorial Bancorp Inc. (NASDAQ: TBNK). Questa offerta rappresenta un premio del 29% rispetto al prezzo di chiusura di Territorial del 12 settembre 2024 e un premio del 70% rispetto al suo prezzo prima dell'annuncio della fusione con Hope Bancorp. La proposta consente fino al 30% degli azionisti esistenti di mantenere le proprie partecipazioni.
Gli aspetti chiave dell'offerta includono:
- Preservare Territorial come istituto focalizzato sulle Hawaii
- Mantenere la leadership locale
- Fornire opportunità di profitto e crescita
- Creare posti di lavoro nelle Hawaii
- Consentire agli azionisti partecipanti di beneficiare della creazione di valore potenziale
Gli investitori esortano gli azionisti di Territorial a sostenere la loro proposta, che credono offra un valore superiore rispetto alla fusione pianificata con Hope Bancorp (NASDAQ: HOPE).
Blue Hill Advisors y otros importantes inversores bancarios han reafirmado su oferta en efectivo de $12.00 por acción para Territorial Bancorp Inc. (NASDAQ: TBNK). Esta oferta representa un premio del 29% respecto al precio de cierre de Territorial del 12 de septiembre de 2024 y un premio del 70% respecto a su precio antes del anuncio de la fusión con Hope Bancorp. La propuesta permite que hasta el 30% de los accionistas existentes mantengan sus participaciones.
Los aspectos clave de la oferta incluyen:
- Preservar a Territorial como una institución enfocada en Hawái
- Mantener el liderazgo local
- Proporcionar oportunidades de rentabilidad y crecimiento
- Crear empleos en Hawái
- Permitir que los accionistas participantes se beneficien de la posible creación de valor
Los inversores instan a los accionistas de Territorial a apoyar su propuesta, que creen que ofrece un valor superior en comparación con la fusión planificada con Hope Bancorp (NASDAQ: HOPE).
블루 힐 어드바이저스와 기타 주요 은행 투자자들이 테리토리얼 뱅콥 Inc. (NASDAQ: TBNK)에 대한 주당 $12.00 현금 제안을 재확인했습니다. 이 제안은 2024년 9월 12일 테리토리얼의 종가에 비해 29% 프리미엄을 나타내며, Hope Bancorp 합병 발표 이전 가격에 비해 70% 프리미엄을 나타냅니다. 제안은 기존 주주가 최대 30%까지 자신의 지분을 유지할 수 있도록 허용합니다.
제안의 주요 사항은 다음과 같습니다:
- 하와이에 중점을 둔 기관으로 테리토리얼 유지
- 지역 리더십 유지
- 수익성 및 성장 기회 제공
- 하와이에 일자리 창출
- 참여하는 주주가 잠재적 가치 창출의 혜택을 받을 수 있도록 함
투자자들은 테리토리얼 주주들에게 그들의 제안에 지지를 요청하며, 이 제안이 Hope Bancorp (NASDAQ: HOPE)과의 계획된 합병에 비해 더 나은 가치를 제공한다고 믿고 있습니다.
Blue Hill Advisors et d'autres investisseurs bancaires de premier plan ont réaffirmé leur offre en espèces de 12,00 $ par action pour Territorial Bancorp Inc. (NASDAQ: TBNK). Cette offre représente une prime de 29% par rapport au prix de clôture de Territorial du 12 septembre 2024 et une prime de 70% par rapport à son prix avant l'annonce de la fusion avec Hope Bancorp. La proposition permet à jusqu'à 30% des actionnaires existants de conserver leurs participations.
Les aspects clés de l'offre incluent :
- Préserver Territorial en tant qu'institution axée sur Hawaï
- Maintenir le leadership local
- Fournir des opportunités de rentabilité et de croissance
- Créer des emplois à Hawaï
- Permettre aux actionnaires participants de bénéficier de la création de valeur potentielle
Les investisseurs encouragent les actionnaires de Territorial à soutenir leur proposition, qu'ils estiment offrir une valeur supérieure par rapport à la fusion prévue avec Hope Bancorp (NASDAQ: HOPE).
Blue Hill Advisors und andere führende Bankinvestoren haben ihr Barangebot von $12.00 pro Aktie für Territorial Bancorp Inc. (NASDAQ: TBNK) bekräftigt. Dieses Angebot stellt eine 29% Prämie auf den Schlusskurs von Territorial am 12. September 2024 dar und eine 70% Prämie auf den Preis vor der Fusion mit Hope Bancorp. Der Vorschlag erlaubt es bis zu 30% der bestehenden Aktionäre, ihre Anteile zu behalten.
Wesentliche Aspekte des Angebots sind:
- Territorial als eine auf Hawaii ausgerichtete Institution zu erhalten
- Lokale Führung zu bewahren
- Chancen für Rentabilität und Wachstum bereitzustellen
- Arbeitsplätze in Hawaii zu schaffen
- Teilnehmenden Aktionären zu ermöglichen, von der potenziellen Wertschöpfung zu profitieren
Die Investoren fordern die Territorial-Aktionäre auf, ihren Vorschlag zu unterstützen, von dem sie glauben, dass er im Vergleich zur geplanten Fusion mit Hope Bancorp (NASDAQ: HOPE) einen überlegenen Wert bietet.
- Offer of $12.00 per share in cash, representing a 29% premium to recent stock price
- 70% premium to Territorial's stock price before Hope merger announcement
- Option for up to 30% of existing shareholders to retain their stakes
- Commitment to keep Territorial as a Hawaii-focused institution under local leadership
- Potential for job creation in Hawaii
- Strong capital support from veteran bank funds exceeding required capital
- Territorial's Board has twice rejected the proposal
- Merger agreement with Hope Bancorp restricts Territorial from pursuing competing proposals
Insights
This proposal represents a significant 29% premium over Territorial's recent stock price, offering
The proposal's emphasis on maintaining Territorial as a local Hawaii institution is strategically sound. It addresses potential concerns about losing a 100+ year old community-focused bank. The plan to invest in growth and technology, potentially creating jobs, aligns with long-term value creation. However, the claim of returning to profitability needs scrutiny, given current banking sector challenges. The investors' belief in Territorial's undervaluation and potential recovery with interest rate cuts is plausible but not guaranteed. The contrast with Hope's offer, which would give Territorial shareholders only
The situation presents a complex governance challenge for Territorial's Board. While the cash offer appears superior, the Board's hands may be tied by the Hope merger agreement. The investors' strategy of appealing directly to shareholders could pressure the Board but also risks creating division. The proposal's structure, offering some shareholders continued participation, is innovative but could raise fairness questions. The Board's duty to consider superior offers must be balanced against contractual obligations. Shareholders' role in the final decision, through their vote on the Hope merger, adds another layer of complexity to this high-stakes corporate governance scenario.
Territorial Shareholders Would Receive
Strong Capital Support from Veteran Bank Funds Exceeds Required Capital
Territorial Would Remain a Hawaii Institution Under Local Hawaii Leadership
Territorial's Board of Directors (the "Board") twice rejected the August 26 proposal, first on September 6 and again on September 12, citing provisions in Territorial's merger agreement with Hope that prohibit the Company from pursuing competing proposals unless specific criteria are met that would render the competing proposal "reasonably likely to lead to a Superior Proposal"2.
The investors are now urging Territorial shareholders to voice their support for the
"We think our proposal is significantly better for Territorial's shareholders and other constituents. We requested the opportunity to engage with the Board, but the terms of the Hope merger agreement prevented that," commented Mr. Landon. "If given the opportunity, we are prepared to move quickly and would expect to close our investment by year end."
In addition to the financial benefits for shareholders, the proposal:
- Preserves a 100+ year old
Hawaii institution focused on serving island markets - Keeps Territorial under local leadership with minimal disruption to employees and customers
- Provides opportunity for Territorial to return to profitability and growth
- Creates jobs in
Hawaii as the Company invests in future growth and technology - Allows current shareholders who participate to share in expected value creation
Mr. Landon and the investors believe Territorial's shares are significantly undervalued and poised to recover as anticipated interest rate cuts alleviate funding pressures and buoy asset values. A combination with Hope that gives Territorial shareholders only a
Jason Blumberg, Managing Member of Blue Hill Advisors, which is the lead investor behind the proposal, commented:
"We believe Territorial shares have considerable upside from here. We are providing a substantial premium in cash and offering a meaningful percentage of existing shareholders the option to participate in the bank's recovery if they choose to. The merger with Hope substantially dilutes the value of any recovery in Territorial. Shareholders who want to own Hope stock can take our cash and buy more shares than they would have received in the merger."
The proposal is supported by leading financials-focused investment funds with indicative commitments that exceed the capital required to consummate the transaction. The investors are prepared to make the required bank regulatory applications related to their respective investments. No other regulatory approvals are expected to be required.
Jerry O'Brien, Chief Executive Officer and Chief Investment Officer of O'Brien-Staley Partners, one of the investors behind the proposal, added:
"We hope Territorial's Board will reconsider its position on the proposal. We are eager to participate as an investor in this situation."
While the investors remain hopeful that Territorial's Board will reconsider their proposal, Territorial's shareholders will be the ultimate arbiters – support from a majority of shares outstanding is required to approve the Hope merger.
"Voting against the Hope merger would send a message that shareholders believe the bank has better options," concluded Mr. Blumberg.
Territorial shareholders are encouraged to contact Blue Hill Advisors for more information or to contact Territorial's Board to express their support for this proposal. Shareholders who have already voted FOR the Hope merger but who wish to change their vote can still do so before the October 10 special meeting of Territorial stockholders by following the instructions for changing votes as described in the prospectus that Hope filed with the
Contacts
For Media:
Breitenbush Partners
Andrew Wilson, 773-425-4991
awilson@breitenbushpartners.com
For Investors:
Blue Hill Advisors
Jason Blumberg, 917-733-0381
jason@bluehilladv.com
About Blue Hill Advisors
Blue Hill Advisors is an advisor to and investor in regional and community banks. The firm looks for opportunities that it believes have been substantially mispriced by the market and seeks to build long-term value through active management.
About OSP
O'Brien-Staley Partners (OSP) operates across four discrete financial business strategies: alternative asset management; market-rate impact investing; nationwide loan servicing; and deposit management. Founded by Jerry O'Brien and Warren Staley in 2010, OSP is imbued with the core credit and fundamental investing discipline, risk management and governance DNA that has long been recognized as hallmarks of their personal and professional brands. https://osp-group.com
FORWARD-LOOKING STATEMENTS
Certain statements and information contained in this communication may be forward looking in nature and may constitute forward-looking statements. Forward-looking statements include all statements that are not historical facts and can typically be identified by words such as "may", "will ", "expect", "could", "should", "intend", "commit", "estimate", "anticipate", "believe", "remain", "on track", "design", "target", "objective", "goal", "forecast", "projection", "outlook", "prospects", "plan", "intend", or similar terminology, including by way of example and without limitation plans, intentions and expectations regarding the proposal to acquire Territorial and the anticipated results, benefits, synergies, costs, timing and other expectations of the benefits of a potential transaction.
Forward-looking statements are related to future, not past, events and are not guarantees of future performance. These statements are based on current expectations and projections about future events and, by their nature, address matters that are, to different degrees, uncertain and are subject to inherent risks and uncertainties. They relate to events and depend on circumstances that may or may not occur or exist in the future, and, as such, undue reliance should not be placed on them. Actual results may differ materially from those expressed in such statements as a result of a variety of factors, including, among other things, the ability of Territorial, on the one hand, and Blue Hill Advisors and certain other investors (collectively, the "Investors"), on the other hand, to agree on terms for the proposed transaction and, in the event a definitive transaction agreement is executed, the ability of the parties to obtain any necessary shareholder and regulatory approvals, to satisfy any other conditions to the closing of the transaction and to consummate the proposed transaction on a timely basis, as well as changes in general economic, financial and market conditions and other changes in business conditions, changes in regulations, and many other factors, most of which are outside of the control of the Investors. The Investors expressly disclaim and do not assume any liability in connection with any inaccuracies in any of these forward-looking statements or in connection with any use by any party of such forward-looking statements. Any forward-looking statements contained in this communication speaks only as of the date of this communication.
The Investors undertake no obligation to update or revise its outlook or forward-looking statements, whether as a result of new developments or otherwise. Names, organizations and company names referred to may be the trademarks of their respective owners. This communication does not represent investment advice, a solicitation, a recommendation, an invitation, an offer for the purchase or sale of financial products and/or of any kind of financial services as contemplated by the laws in any country or state.
IMPORTANT INFORMATION FOR INVESTORS AND SHAREHOLDERS
This communication does not constitute an offer to buy or sell or the solicitation of an offer to buy or sell any securities or a solicitation of any vote or approval. This material relates to a proposed transaction between the Investors and Territorial, which may become the subject of a proxy statement filed by the Investors with the SEC. This material is not a substitute for any proxy statement that the Investors may file with the SEC or any other documents which the Investors may send to Territorial's shareholders in connection with the proposed transaction. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ ANY MATERIALS FILED BY ANY OF THE INVESTORS WITH THE SEC IN CONNECTION WITH THE PROPOSED TRANSACTION IF AND WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. All such documents, if filed, will be available free of charge at the SEC's website (www.sec.gov) or by directing a request to the Investors through the investor contacts listed above.
PARTICIPANTS IN THE SOLICITATION
The Investors and their respective directors, principals, general partners, managing members, executive officers and other employees may be deemed to be participants in any solicitation of shareholders in connection with the proposed transaction. Information about the Investors and their directors, principals, general partners, managing members and executive officers may be made available in the Investors' proxy statement, if filed. As of September 16, 2024, Blue Hill Advisors and its affiliates own approximately 660 shares of common stock of Territorial.
1 | Premium measured relative to Territorial closing stock price on the Nasdaq on September 12, 2024, the day on which Territorial publicly disclosed the proposal. |
2 | Source: Agreement and Plan of Merger by and between Hope Bancorp, Inc. and Territorial Bancorp Inc. dated as of April 26, 2024. |
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SOURCE Blue Hill Advisors
FAQ
What is the cash offer price for Territorial Bancorp (TBNK) proposed by Blue Hill Advisors?
How does the Blue Hill Advisors offer compare to Territorial's stock price before the Hope Bancorp (HOPE) merger announcement?
What percentage of existing Territorial shareholders can retain their stakes under the Blue Hill Advisors proposal?
How has Territorial's Board responded to the Blue Hill Advisors offer as of September 17, 2024?
What is the expected timeline for closing the Blue Hill Advisors investment in Territorial if approved?
