Quantcast

Saturday, July 26, 2014         

 Print   Email   Comment | View 2 Comments   Most Popular   Save   Post   Retweet

CPB's parent finalizes $125M share buyback

By Star-Advertiser staff

POSTED:
LAST UPDATED: 10:31 a.m. HST, Mar 28, 2014


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.







 Print   Email   Comment | View 2 Comments   Most Popular   Save   Post   Retweet

COMMENTS
(2)
You must be subscribed to participate in discussions
By participating in online discussions you acknowledge that you have agreed to the TERMS OF SERVICE. An insightful discussion of ideas and viewpoints is encouraged, but comments must be civil and in good taste, with no personal attacks. Because only subscribers are allowed to comment, we have your personal information and are able to contact you. If your comments are inappropriate, you may receive a warning, and if you persist with such comments you may be banned from posting. To report comments that you believe do not follow our guidelines, email commentfeedback@staradvertiser.com.
Leave a comment

Please login to leave a comment.
KB wrote:
Banks buying back seems like insider trading they have the most and current information ...the small investor is getting less and less chance ; dividend vs capital gain the bank president and staff always wins they have with the most intell.
on March 28,2014 | 11:24AM
badcard36 wrote:
That makes no sense. Share buybacks aren't limited to financial institutions. Any company can buy back shares off the market. Apple purchased $50 billion of their stock this year via their share buyback program. It actually increases shareholder value by decreasing share dilution (total amount of stock available). Small investors aren't restricted from following CPB in buying shares on the open market if they want to follow the bank's buyback program. Shareholders are the ones who "win" here.
on March 28,2014 | 12:45PM
IN OTHER NEWS
Breaking News
Blogs
Volley Shots
Fey, Enriques on MJNT

Political Radar
Wilhelmina Rise, et al.

Court Sense
Cold War

Political Radar
Climate change

Island Crafters
YouCanMakeThis.com

Warrior Beat
Empty pit

Political Radar
Switch

Political Radar
`Progressive hero’