Featured Company News – Cathay General Bancorp Completes Acquisition of SinoPac Bancorp
ACCESSWIRE
LONDON, UK / ACCESSWIRE / July 18, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for Cathay General Bancorp (NASDAQ: CATY) ("CATY"), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/?symbol=CATY. The Company announced on July 14, 2017, that it has completed the acquisition of SinoPac Bancorp, the US subsidiary of Bank SinoPac Co. Ltd and the parent Company of Far East National Bank (FENB). Cathay General Bancorp is the holding Company for Cathay Bank and had announced the acquisition of SinoPac Bancorp via a Stock Purchase Agreement (SPA) in July 2016. For immediate access to our complimentary reports, including today's coverage, register for free now at:
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on CATY. Go directly to your stock of interest and access today's free coverage at:
CATY has already issued 926,192 shares as per the terms of the SPA, and it plans to pay the remaining amount of the deal in cash. The total amount of the deal works out to approximately $351.6 million plus additional payments based on the realization of certain assets of FENB, at the time of closing of the deal. The deal will enable CATY to take over the business and branches operated by FENB.
On June 26, 2017, CATY had announced that the end date for the completion of the deal was extended from the planned July 08, 2017, to September 20, 2017. CATY had managed to get the necessary approvals from US regulators. However, the deal was delayed as Bank SinoPac had yet to get the deal approved by the Financial Supervisory Commission (FSC) in Taiwan.
Details of the Stock Purchase Agreement
In July 2016, CATY and Bank SinoPac signed a SPA, wherein CATY would acquire SinoPac Bancorp, the US based subsidiary of Bank SinoPac. The cash plus stock deal was valued at $340 million and would be subject to certain adjustments based on the realization of certain assets of FENB. Out of the total consideration price, CATY has the option to pay at least 90% in cash and the remainder in CATY's common stock. An amount of $100 million was to be set aside from the consideration price and to be paid once the planned merger of FENB and the Cathay Bank is completed. Another 10% of the consideration price was to be released over a period of three years.
The transaction was expected to close in H1 2017 subject to regulatory approvals and other closing conditions.
CATY expected the deal to be accretive to its GAAP EPS by 4%-5%, excluding the one-time transaction cost as well as any restructuring charges.
About Cathay General Bancorp
CATY is the holding Company for Cathay Bank, a California state-chartered bank. Cathay Bank was founded in 1962 and offers a wide variety of financial services. At present, it has 33 branches in California, 12 branches in New York State, 3 in the Chicago, Illinois area, 3 in Washington State, 2 in Texas, 1 in Maryland, 1 in Massachusetts, 1 in Nevada, 1 in New Jersey, 1 in Hong Kong, and a representative office in Shanghai and in Taipei.
About Bank SinoPac, SinoPac Bancorp and FENB
Founded in 1992, Bank SinoPac is a member of SinoPac Holdings and is a Taiwan-based bank holding Company. Bank SinoPac has over 200 service locations and serves more than 2.5 million customers throughout Asia and North America. It has total assets in excess of $50 billion.
SinoPac Bancorp is the US based subsidiary of Bank SinoPac. In 1997, Bank SinoPac acquired FENB, and subsequently formed SinoPac Bancorp, a US bank holding Company.
Far East National Bank (FENB) was founded in 1974 and is headquartered in Los Angeles, California. It is a US federally chartered bank and a wholly owned subsidiary of SinoPac Bancorp. FENB offers both corporate and individual banking services including commercial real estate lending, corporate banking, investments, treasury and foreign exchange, and other consumer businesses. At present, FENB has nine branches in California and a representative office in Beijing. FENB has over 170 employees and its total assets exceed $1.3 billion.
Last Close Stock Review
Cathay General Bancorp's share price finished yesterday's trading session at $37.37, marginally up 0.30%. A total volume of 360.16 thousand shares has exchanged hands. The Company's stock price surged 2.47% in the last three months and 24.28% in the previous twelve months. Shares of the Company have a PE ratio of 16.80 and have a dividend yield of 2.25%. The stock currently has a market cap of $3.01 billion.
Pro-Trader Daily:
Pro-Trader Daily (Pro-TD) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. PRO-TD has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles, and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.
PRO-TD has not been compensated; directly or indirectly; for producing or publishing this document.
PRESS RELEASE PROCEDURES:
The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst [for further information on analyst credentials, please email contact@protraderdaily.com. Rohit Tuli, a CFA® charter holder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by PRO-TD. PRO-TD is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.
NO WARRANTY
PRO-TD, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. PRO-TD, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, PRO-TD, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.
NOT AN OFFERING
This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither PRO-TD nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://protraderdaily.com/disclaimer/.
CONTACT
For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:
