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STAR-ADVERTISER / 2009
The U.S. Treasury stands to make $35.9 million from the sale of 2.85 million Central Pacific shares at $12.75 each. Shown is Central Pacific Bank's branch at South King Street.
The parent of Central Pacific Bank said final results have been confirmed and it will repurchase more than 6.1 million shares worth $125 million, following an auction that concluded March 21, and separate agreements with its two largest shareholders.
The state’s fourth-largest bank said Friday it will buy back $68.8 million worth of its Central Pacific Financial Corp. common stock at the price of $20.20 from shareholders who tendered shares via the auction. Central Pacific also will repurchase $56.2 million worth of shares through agreements with its two largest shareholders, Carlyle Financial Services Harbor LP and ACMO-CPF LLC, at the price of $20.20 per share. The bank will repurchase $28.1 million worth of shares from each of the two shareholders.
Carlyle and ACMO-CPF were the lead investors which each purchased $98.6 million worth of Central Pacific Financial Corp. stock in February 2011 at the price of $10 a share as part of the bank’s $325 million recapitalization. Carlyle and ACMO-CPF each currently owns 22.5 percent of the company’s 42.1 million outstanding shares.
The private repurchases are expected to occur April 7, and the shares accepted for purchase through the tender offer will be paid "promptly" according to the terms of the tender offer.
Upon completion of the tender offer and private purchases, Central Pacific will have about 35.9 million shares outstanding.
Central Pacific’s stock closed up 25 cents Friday at $20.05 on the New York Stock Exchange.
