Territorial Bancorp Reaffirms Its Board’s Commitment to Proposed Merger with Hope Bancorp
Territorial Bancorp Inc. (TBNK) has reaffirmed its commitment to the proposed merger with Hope Bancorp, announced on April 29, 2024. The company rejected an unsolicited proposal from Blue Hill Advisors to acquire Territorial, citing it as highly uncertain and inferior to the Hope merger agreement. The Territorial Board found multiple flaws in the Blue Hill proposal, including:
- Lack of evidence of financial backing
- Uncertainty about securing regulatory approvals
- Various conditions, including due diligence and a 70% tender offer requirement
In contrast, the Hope merger has a fully negotiated agreement, regulatory applications in process, and no third-party financing required. Territorial urges shareholders to vote 'yes' for the Hope merger, emphasizing its potential benefits for customers, employees, and long-term strengthening of the company.
Territorial Bancorp Inc. (TBNK) ha riassicurato il suo impegno nella fusione proposta con Hope Bancorp, annunciata il 29 aprile 2024. L'azienda ha rifiutato una proposta non richiesta da Blue Hill Advisors per acquisire Territorial, definendola altamente incerta e inferiore all'accordo di fusione con Hope. Il Consiglio di Territorial ha riscontrato molteplici difetti nella proposta di Blue Hill, tra cui:
- Mancanza di prove di sostegno finanziario
- Incertezze nel garantire le approvazioni normative
- Vari vincoli, tra cui la due diligence e un requisito di offerta pubblica di acquisto del 70%
Al contrario, la fusione con Hope ha un accordo completamente negoziato, con domande normative in lavorazione e senza necessità di finanziamento da terzi. Territorial esorta gli azionisti a votare 'sì' per la fusione con Hope, sottolineando i potenziali benefici per clienti, dipendenti e il rafforzamento a lungo termine dell'azienda.
Territorial Bancorp Inc. (TBNK) ha reafirmado su compromiso con la fusión propuesta con Hope Bancorp, anunciada el 29 de abril de 2024. La compañía rechazó una propuesta no solicitada de Blue Hill Advisors para adquirir Territorial, citándola como altamente incierta e inferior al acuerdo de fusión con Hope. La Junta de Territorial encontró múltiples fallas en la propuesta de Blue Hill, incluyendo:
- Falta de evidencia de respaldo financiero
- Incertidumbre sobre la obtención de aprobaciones regulatorias
- Varias condiciones, incluida la debida diligencia y un requisito de oferta pública de compra del 70%
En contraste, la fusión con Hope tiene un acuerdo completamente negociado, con solicitudes regulatorias en proceso y sin necesidad de financiamiento de terceros. Territorial insta a los accionistas a votar 'sí' por la fusión con Hope, enfatizando sus beneficios potenciales para los clientes, empleados y el fortalecimiento a largo plazo de la empresa.
테리토리얼 뱅코프(TBNK)는 2024년 4월 29일 발표된 호프 뱅코프와의 제안된 합병에 대한 약속을 재확인했습니다. 회사는 블루 힐 어드바이저스의 인수 제안을 거부했습니다, 불확실성이 높고 호프 합병 계약에 비해 열등하다고 언급했습니다. 테리토리얼 이사회는 블루 힐 제안의 여러 결함을 발견했으며, 여기에는:
- 재정 지원에 대한 증거 부족
- 규제 승인 확보에 대한 불확실성
- 법적 실사 및 70% 공개 매수 요구와 같은 다양한 조건
반면, 호프와의 합병은 완전히 협상된 계약을 가지고 있으며, 규제 신청이 진행 중이고 제3자 자금 조달이 필요하지 않습니다. 테리토리얼은 주주들에게 호프 합병에 대해 '예'라고 투표할 것을 촉구하며, 이는 고객, 직원 및 회사의 장기적인 강화를 위한 잠재적 이점을 강조합니다.
Territorial Bancorp Inc. (TBNK) a réaffirmé son engagement envers la fusion proposée avec Hope Bancorp, annoncée le 29 avril 2024. La société a rejeté une proposition non sollicitée de Blue Hill Advisors pour acquérir Territorial, la qualifiant d'incertaine et inférieure à l'accord de fusion avec Hope. Le conseil d'administration de Territorial a trouvé plusieurs défauts dans la proposition de Blue Hill, y compris :
- Absence de preuve de soutien financier
- Incertitude concernant l'obtention des approbations réglementaires
- Différentes conditions, y compris la diligence raisonnable et une exigence d'offre publique de 70%
En revanche, la fusion avec Hope dispose d'un accord entièrement négocié, les demandes réglementaires étant en cours, et aucun financement externe n'est requis. Territorial exhorte les actionnaires à voter 'oui' pour la fusion avec Hope, en soulignant les avantages potentiels pour les clients, les employés et le renforcement à long terme de l'entreprise.
Territorial Bancorp Inc. (TBNK) hat sein Engagement für die vorgeschlagene Fusion mit Hope Bancorp bekräftigt, die am 29. April 2024 angekündigt wurde. Das Unternehmen hat einen unaufgeforderten Vorschlag von Blue Hill Advisors zur Übernahme von Territorial abgelehnt, da dieser als sehr unsicher und unterlegen im Vergleich zum Hope-Fusionsvertrag angesehen wird. Der Territorial-Vorstand fand mehrere Mängel im Vorschlag von Blue Hill, darunter:
- Fehlende Nachweise für die finanzielle Unterstützung
- Unsicherheit über die Sicherstellung von regulatorischen Genehmigungen
- Verschiedene Bedingungen, einschließlich Due Diligence und einer Anforderung von 70% beim öffentlichen Angebot
Im Gegensatz dazu hat die Fusion mit Hope einen vollständig ausgehandelten Vertrag, regulatorische Anträge sind in Bearbeitung, und es ist keine Drittfinanzierung erforderlich. Territorial fordert die Aktionäre auf, mit 'Ja' für die Fusion mit Hope zu stimmen und betont die potenziellen Vorteile für Kunden, Mitarbeiter und die langfristige Stärkung des Unternehmens.
- Reaffirmation of commitment to Hope Bancorp merger
- Hope merger agreement is fully negotiated and in advanced stages
- No third-party financing required for Hope merger
- Potential for enhanced resources and technology platforms post-merger
- Rejection of potentially higher purchase price offer from Blue Hill Advisors
- Uncertainty surrounding shareholder approval for Hope merger
Insights
Territorial Bancorp's reaffirmation of its merger with Hope Bancorp, despite a competing offer from Blue Hill Advisors, signals strong confidence in the original deal. The Board's rejection of Blue Hill's proposal, citing uncertainty and inferiority, underscores the
- A fully negotiated agreement
- Regulatory applications in process
- No third-party financing required
These elements reduce execution risk significantly. The lack of credible financial backing and regulatory approval assurances in Blue Hill's offer further justifies the Board's decision. For investors, this steadfast commitment to the Hope merger suggests a higher probability of deal completion and potentially smoother post-merger integration, which could positively impact long-term shareholder value.
The Board's decision to reject Blue Hill's proposal demonstrates strong fiduciary responsibility. By thoroughly evaluating the offer with independent advisors, they've acted in shareholders' best interests. The legal risks associated with Blue Hill's proposal are significant:
- Unidentified investors raise disclosure concerns
- Lack of evidence for regulatory approval capability could lead to regulatory hurdles
- The 70% tender offer condition introduces execution uncertainty
In contrast, the Hope merger has cleared major legal milestones. The SEC filing of Form S-4 and distribution of the Proxy Prospectus indicate substantial progress in regulatory compliance. This transparency and regulatory advancement significantly reduce legal risks for Territorial and its shareholders, making the Hope merger a more legally sound option.
The market implications of Territorial's decision are multifaceted. By rejecting Blue Hill's nominally higher offer, Territorial signals that deal certainty trumps potential short-term gains. This strategy aligns with current market trends favoring stability and proven track records in M&A activities. Key market considerations include:
- Synergy potential with Hope's larger resource base and technology platforms
- Enhanced competitive positioning in the banking sector
- Expanded product offerings potentially leading to increased market share
The market is likely to view this decision positively, as it demonstrates prudent risk management and a focus on long-term value creation. Investors should anticipate potential short-term volatility as the market digests this information, but the overall outlook for the merged entity appears favorable, given the strategic fit and operational synergies highlighted in Territorial's statement.
Rejects Blue Hill Proposal as Highly Uncertain, Inferior to Hope Merger Agreement and Unlikely to Benefit Territorial Shareholders
HONOLULU, Sept. 19, 2024 (GLOBE NEWSWIRE) -- Territorial Bancorp Inc. (“Territorial”) today reaffirmed the commitment of its Board of Directors to the proposed merger with Hope Bancorp, Inc. (“Hope”) that was announced on April 29, 2024. The announcement was made in response to an unsolicited proposal from Blue Hill Advisors LLC (“Blue Hill”) to acquire Territorial.
“The unsolicited letter from Blue Hill claims to provide a nominally higher purchase price, but there are significant factors making the proposal highly uncertain and inferior to the merger agreed upon with Hope,” said Allan S. Kitagawa, Chairman, CEO and President of Territorial. “The Territorial Board carefully considered the proposal on two separate occasions, and after weighing the advice of independent legal and financial advisors, the Board rejected the proposal. In comparison to the Hope merger, where we have an experienced acquiror and a fully negotiated merger agreement, and where all required regulatory applications have been made and are being processed, and no third-party financing is required, the Blue Hill proposal is highly speculative. We again urge shareholders to vote “yes” in favor of the proposed merger with Hope Bancorp.”
The Blue Hill proposal was found to contain multiple flaws:
- It was made on behalf of a group of largely unidentified investors who provided no evidence that they possessed the financial means to back up their offer.
- Similarly, no evidence was provided to assure the Territorial Board that the unidentified investor group could secure the required regulatory approvals promptly, if at all.
- The proposal was subject to a variety of conditions, including due diligence as well as the completion of a tender offer where at least
70% of Territorial’s outstanding shares are submitted for cancellation. By contrast, a detailed due diligence review has already been completed and only a minimal number of remaining conditions are needed to complete the Hope merger.
These and other aspects of the Blue Hill proposal led the Territorial Board to reject it in the long-term interests of shareholders.
The proposed merger with Hope is expected to bring together two companies that share long-standing commitments to their customers and communities. Territorial’s customers will continue to benefit from the bank’s strong focus on relationship banking, personalized service and tailored financial solutions. At the same time, the proposed combination is expected to strengthen Territorial for the long term, providing many advantages for its customers and employees as it becomes part of a larger organization with greater resources, enhanced technology platforms, and an expanded array of banking products and services.
Additional Information about the Hope Merger and Where to Find It
In connection with the proposed Hope Merger, Hope has filed with the U.S. Securities and Exchange Commission (the “SEC”) a Registration Statement on Form S-4, containing the Proxy Prospectus, which has been mailed or otherwise delivered to Territorial’s stockholders on or about August 29, 2024, as supplemented September 12, 2024. Hope and Territorial may file additional relevant materials with the SEC. INVESTORS AND STOCKHOLDERS ARE URGED TO READ THE PROXY PROSPECTUS, AND ANY OTHER RELEVANT DOCUMENTS THAT ARE FILED OR FURNISHED OR WILL BE FILED OR FURNISHED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION AND RELATED MATTERS. You may obtain any of the documents filed with or furnished to the SEC by Hope or Territorial at no cost from the SEC’s website at www.sec.gov.
About Us
Territorial Bancorp Inc., headquartered in Honolulu, Hawaii, is the stock holding company for Territorial Savings Bank. Territorial Savings Bank is a state-chartered savings bank which was originally chartered in 1921 by the Territory of Hawaii. Territorial Savings Bank conducts business from its headquarters in Honolulu, Hawaii, and has 28 branch offices in the state of Hawaii. For additional information, please visit https://www.tsbhawaii.bank.
Contact: Walter Ida
(808) 946-1400
FAQ
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