Blue Hill Advisors Announces ISS Recommendation AGAINST Territorial Bancorp Merger with Hope Bancorp
ISS, a leading proxy advisory firm, has recommended that Territorial Bancorp shareholders vote AGAINST the proposed merger with Hope Bancorp at the upcoming Special Meeting on October 10, 2024. ISS concludes that the merger does not appear to maximize value for shareholders. The report cites concerns about the lack of a robust sales process, merger agreement restrictions, and the improved outlook for financial institutions.
Blue Hill Advisors and former Hawaii banking executive Allan Landon have presented a competing offer, which ISS considers sufficiently credible to mitigate the downside risk of rejecting the Hope merger. Blue Hill's proposal includes a 70% tender offer, allowing shareholders to receive a cash premium while maintaining a 30% interest in the company.
Blue Hill and its partners remain committed to their superior proposal, which they believe will benefit all of Territorial's stakeholders. Shareholders are encouraged to contact Blue Hill for more information or express their support for this proposal to Territorial's Board.
ISS, una delle principali società di consulenza per azionisti, ha raccomandato agli azionisti di Territorial Bancorp di votare CONTRO la fusione proposta con Hope Bancorp durante la prossima Assemblea Speciale del 10 ottobre 2024. ISS conclude che la fusione non sembra massimizzare il valore per gli azionisti. Il rapporto cita preoccupazioni riguardo alla mancanza di un processo di vendita robusto, le restrizioni dell'accordo di fusione e il miglioramento delle prospettive per le istituzioni finanziarie.
Blue Hill Advisors e l'ex dirigente bancario delle Hawaii Allan Landon hanno presentato un'offerta concorrente, che ISS considera sufficientemente credibile per mitigare il rischio negativo di rifiutare la fusione con Hope. La proposta di Blue Hill include un'offerta pubblica di acquisto del 70%, consentendo agli azionisti di ricevere un premio in contante mantenendo un interesse del 30% nell'azienda.
Blue Hill e i suoi partner rimangono impegnati nella loro proposta superiore, che credono porterà benefici a tutti gli stakeholder di Territorial. Gli azionisti sono incoraggiati a contattare Blue Hill per ulteriori informazioni o esprimere il loro supporto per questa proposta al Consiglio di Amministrazione di Territorial.
ISS, una de las principales firmas de asesoría de accionistas, ha recomendado a los accionistas de Territorial Bancorp que voten EN CONTRA de la fusión propuesta con Hope Bancorp en la próxima Asamblea Especial el 10 de octubre de 2024. ISS concluye que la fusión no parece maximizar el valor para los accionistas. El informe cita preocupaciones sobre la falta de un proceso de ventas sólido, las restricciones del acuerdo de fusión y las perspectivas mejoradas para las instituciones financieras.
Blue Hill Advisors y el ex ejecutivo bancario de Hawái Allan Landon han presentado una oferta competidora, que ISS considera suficientemente creíble para mitigar el riesgo negativo de rechazar la fusión con Hope. La propuesta de Blue Hill incluye una oferta pública de compra del 70%, permitiendo a los accionistas recibir una prima en efectivo mientras mantienen un interés del 30% en la empresa.
Blue Hill y sus socios siguen comprometidos con su propuesta superior, que creen beneficiará a todos los interesados de Territorial. Se anima a los accionistas a contactar a Blue Hill para obtener más información o expresar su apoyo a esta propuesta al Consejo de Territorial.
ISS는 주요 주주 자문 회사로서 Territorial Bancorp 주주들에게 오는 2024년 10월 10일에 개최되는 특별 회의에서 Hope Bancorp와의 제안된 합병에 반대 투표할 것을 권장했습니다. ISS는 이 합병이 주주 가치를 극대화하는 것으로 보이지 않는다고 결론지었습니다. 보고서는 견고한 판매 프로세스의 부족, 합병 계약의 제한 사항, 그리고 금융 기관에 대한 개선된 전망에 대한 우려를 언급하고 있습니다.
Blue Hill Advisors와 전 하와이 은행 임원 Allan Landon은 ISS가 Hope 합병을 거부하는 부정적 위험을 완화할 수 있을 만큼 신뢰할 수 있다고 여기는 경쟁 제안을 제시했습니다. Blue Hill의 제안에는 70%의 공개 매수 제안이 포함되어 있어 주주들이 현금 프리미엄을 받을 수 있으며 회사의 30% 지분을 유지할 수 있습니다.
Blue Hill과 그 파트너들은 모든 Territorial 이해관계자에게 혜택을 줄 것이라고 믿는 우수한 제안에 전념하고 있습니다. 주주들은 Blue Hill에 추가 정보를 요청하거나 Territorial 이사회에 이 제안에 대한 지지를 표현하는 것을 권장받고 있습니다.
ISS, une firme de conseil en actionnaires de premier plan, a recommandé aux actionnaires de Territorial Bancorp de voter CONTRE la fusion proposée avec Hope Bancorp lors de la prochaine Assemblée Spéciale le 10 octobre 2024. ISS conclut que la fusion ne semble pas maximiser la valeur pour les actionnaires. Le rapport mentionne des préoccupations concernant l'absence d'un processus de vente solide, les restrictions de l'accord de fusion et les perspectives améliorées pour les institutions financières.
Blue Hill Advisors et l'ancien dirigeant bancaire d'Hawaï Allan Landon ont présenté une offre concurrente, que ISS juge suffisamment crédible pour atténuer le risque d'un rejet de la fusion avec Hope. La proposition de Blue Hill inclut une offre publique d'achat de 70 %, permettant aux actionnaires de recevoir une prime en espèces tout en conservant un intérêt de 30 % dans l'entreprise.
Blue Hill et ses partenaires restent engagés envers leur proposition supérieure, qu'ils croient bénéfique pour toutes les parties prenantes de Territorial. Les actionnaires sont encouragés à contacter Blue Hill pour plus d'informations ou à exprimer leur soutien à cette proposition au Conseil d'administration de Territorial.
ISS, eine führende Beratungsfirma für Aktionäre, hat den Aktionären von Territorial Bancorp empfohlen, auf der bevorstehenden Sonderversammlung am 10. Oktober 2024 GEGEN die vorgeschlagene Fusion mit Hope Bancorp zu stimmen. ISS kommt zu dem Schluss, dass die Fusion anscheinend nicht den Wert für die Aktionäre maximiert. Der Bericht führt Bedenken hinsichtlich des Mangels an einem soliden Verkaufsprozess, Einschränkungen im Fusionsvertrag und die verbesserten Aussichten für Finanzinstitute an.
Blue Hill Advisors und der ehemalige Bankexecutive aus Hawaii Allan Landon haben ein konkurrierendes Angebot vorgelegt, das ISS als ausreichend glaubwürdig einschätzt, um das Abwärtsrisiko einer Ablehnung der Fusion mit Hope zu mindern. Das Angebot von Blue Hill umfasst ein Übernahmeangebot von 70%, das es den Aktionären ermöglicht, eine Geldprämie zu erhalten und gleichzeitig eine 30%ige Beteiligung am Unternehmen zu behalten.
Blue Hill und seine Partner bleiben ihrem überlegenen Vorschlag verpflichtet, von dem sie glauben, dass er allen Stakeholdern von Territorial zugutekommen wird. Aktionäre werden ermutigt, Blue Hill für weitere Informationen zu kontaktieren oder ihre Unterstützung für diesen Vorschlag dem Board von Territorial mitzuteilen.
- ISS recommends shareholders vote AGAINST the Hope Bancorp merger
- Blue Hill Advisors' competing offer is considered credible by ISS
- Blue Hill's proposal includes a 70% tender offer with cash premium
- Territorial shares are trading above the implied merger consideration
- Territorial's board ran a sales process
- Merger agreement restrictions limit Territorial's ability to engage with competing bidders
- The Hope merger was announced near Territorial's all-time low trading price
Insights
The ISS recommendation against the Hope Bancorp-Territorial Bancorp merger is a significant development that could reshape the deal landscape. ISS's concerns about the lack of a robust sales process and the board's ability to engage with competing bidders raise questions about the merger's value maximization for Territorial shareholders.
Key points to consider:
- The competing offer from Blue Hill appears credible enough to mitigate downside risk of rejecting the Hope deal.
- Territorial shares are trading above the implied merger consideration, suggesting market expectations of a potentially better deal.
- The timing of the original deal announcement near Territorial's all-time low trading price and before recent interest rate cuts may have disadvantaged Territorial in negotiations.
- Blue Hill's proposal includes a
70% tender offer, providing both cash premium and potential upside exposure for shareholders.
This situation highlights the importance of thorough due diligence and competitive bidding in M&A transactions. Investors should closely monitor the upcoming special meeting and any potential revised offers, as the outcome could significantly impact Territorial's valuation and future prospects.
Concludes that Proposed Merger with Hope "Does Not Appear to Maximize Value for Shareholders"
Competing Offer "Appears Sufficiently Credible to Mitigate the Downside Risk of Rejecting the Proposed Merger"
Recommends Territorial Shareholders Vote Against All Proposals at the Upcoming Special Meeting
In its report, ISS concludes that Hope's takeover of Territorial is not in the best interest of the Company's shareholders:1
- "Given the lack of a robust sales process, the fact that the merger agreement restrictions accepted by the board limit its ability to engage with a competing bidder, and the improved outlook for financial institutions, the proposed merger with HOPE does not appear to maximize value for shareholders."
- "Despite some uncertainty, the competing offer from Blue Hill appears sufficiently credible to mitigate the downside risk of rejecting the proposed merger – as reflected by the fact that shares are currently trading above the implied merger consideration."
- "Nonetheless, the deal was announced near TBNK's all-time low trading price, and a few months before the recent decision by the Federal Reserve to cut interest rates, both of which raise the concern that the board did not negotiate the transaction from a position of strength."
- "The board ran a limited sales process, primarily engaging with a bidder brought to it by its financial advisor, and only contacting two other banks that had previously expressed interest in a combination."
- "TBNK shares have rallied since the consortium's sweetened competing bid on Sept. 26, trading above the implied value of the merger consideration."
- "…the proposed 70 percent tender would allow shareholders to crystallize a cash premium for most of their shares and maintain a 30 percent interest in the company, thus providing certainty of value along with potential upside exposure."
Jason Blumberg, Managing Member of Blue Hill, commented:
"We are pleased that ISS has recommended that shareholders vote AGAINST the Hope merger at the upcoming Special Meeting. We are prepared to move quickly to execute our transaction, which we believe will benefit all of Territorial's stakeholders."
Jerry O'Brien, Chief Executive Officer and Chief Investment Officer of O'Brien-Staley Partners, one of the investors behind the proposal, added:
"We remain keenly interested in Territorial Bancorp at the higher price and appreciate Allan Landon's leadership in advancing this superior proposal."
Mr. Landon concluded:
"We remain committed to our superior proposal, which is better for shareholders, employees, customers and the Hawaiian market."
More information on the proposal from Blue Hill and Mr. Landon can be found at www.NewTerritorial.com and in a presentation titled, "A Better Deal for Territorial".
Territorial shareholders are encouraged to contact Blue Hill 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
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NO OFFER OR SOLICITATION
This document shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which the offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the
ADDITIONAL INFORMATION AND WHERE TO FIND IT
This communication does not constitute an offer to buy or solicitation of an offer to sell any securities. This communication relates to a proposal that Investors have made for a transaction with Territorial. In furtherance of this proposal and subject to future developments, Investors or certain affiliated entities (and, if a negotiated transaction is agreed to, Territorial) may file one or more registration statements, proxy statements, tender offer statements or other documents with the SEC. This communication is not a substitute for any proxy statement, registration statement, tender offer statement, prospectus or other document Investors or any of their affiliates and/or Territorial may file with the SEC in connection with the proposed transaction. INVESTORS AND SECURITY HOLDERS OF TERRITORIAL ARE URGED TO READ THE PROXY STATEMENT(S), REGISTRATION STATEMENT, TENDER OFFER STATEMENT, PROSPECTUS AND/OR OTHER DOCUMENTS FILED WITH THE SEC CAREFULLY IN THEIR ENTIRETY IF AND WHEN THEY BECOME AVAILABLE AS THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. Any definitive proxy statement(s) or prospectus(es) (if and when available) will be mailed to stockholders of Territorial, as applicable. Investors and security holders of Territorial will be able to obtain free copies of these documents (if and when available) and other documents filed with the SEC through the web site maintained by the SEC at www.sec.gov.
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This communication is neither a solicitation of a proxy nor a substitute for any proxy statement or other filings that may be made with the SEC.
1 Permission to quote ISS was neither sought nor obtained. Emphases added.
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SOURCE Blue Hill Advisors
FAQ
What did ISS recommend regarding the Territorial Bancorp and Hope Bancorp merger?
Why does ISS believe the Hope Bancorp merger is not in shareholders' best interest?
What is Blue Hill Advisors' competing offer for Territorial Bancorp?
When is the Special Meeting of Stockholders for Territorial Bancorp scheduled?
