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:
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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.
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