Territorial Bancorp's Shareholders Approve Merger with Hope Bancorp

Deal News | Nov 07, 2024 | EIN

Territorial Bancorp's Shareholders Approve Merger with Hope Bancorp

Territorial Bancorp, a Honolulu-based bank, has obtained shareholder approval for its merger with Hope Bancorp, a Los Angeles-based bank, during a special meeting. This merger, valued at $78.6 million, is structured as a tax-free stock-for-stock transaction. Blue Hill Advisors, a competing investor group, offered a higher cash offer of $12.50 per share, which was rejected multiple times by Territorial's board. The merger is expected to close by the end of the year, pending regulatory approval, and will see Territorial's shareholders receive 0.8048 shares of Hope Bancorp stock for each share they own. This decision comes despite Blue Hill Advisors' opposition and initial recommendation against the merger by proxy adviser Institutional Shareholder Services. ISS, later on, recommended supporting the merger. Territorial faced recent financial challenges, reporting a loss, while Hope reported robust earnings. The merger aims to enhance services and resources for customers and employees of both banks.

Sectors

  • Banking
  • Mergers and Acquisitions

Geography

  • United States – The operations and merger involve U.S.-based banks, specifically located in Hawaii and California.

Industry

  • Banking – The article discusses the merger of two banking institutions, which impacts their operations and service offerings.
  • Mergers and Acquisitions – The core subject of the article is the proposed acquisition of Territorial Bancorp by Hope Bancorp.

Financials

  • $78.6 million – Valuation of the all-stock transaction for the merger between Territorial Bancorp and Hope Bancorp.
  • $12.50 per share – The cash offer per share proposed by Blue Hill Advisors to Territorial Bancorp shareholders.
  • $1.3 million – Loss reported by Territorial Bancorp in the third quarter.
  • $24.2 million – Net income reported by Hope Bancorp in the third quarter.
  • $3 million – Termination fee Territorial must pay if the merger falls under certain circumstances.

Participants

NameRoleTypeDescription
Territorial BancorpTargetCompanyA Honolulu-based bank that is the subject of the merger bid by Hope Bancorp.
Hope BancorpBidding CompanyCompanyA Los Angeles-based bank aiming to acquire Territorial Bancorp.
Blue Hill AdvisorsOther Bidding CompanyCompanyAn investor group that submitted a rival bid to acquire Territorial Bancorp with a cash offer.
Institutional Shareholder ServicesProxy AdvisorCompanyA proxy advisory firm that provides voting recommendations to shareholders, initially opposed and later supported the Hope Bancorp merger.
Glass LewisProxy AdvisorCompanyAnother proxy advisory firm that recommended shareholders to approve the merger.