Jueves, 21 Marcha, 2019

Charlotte's Capital Bank Selling To First Horizon for $2.2B

Tobias Pedroso | 04 May, 2017, 22:32

The combined company is expected to have $40 billion in assets, as First Horizon's $30 billion combines with Capital Bank's $10 billion.

First Horizon will keep the Capital Bank brand outside Tennessee. Our investigation concerns whether the Capital Bank board of directors is fulfilling its fiduciary duties, maximizing the value of the Company, disclosing all material benefits and costs, and obtaining full and fair consideration for Company stockholders.

Barclays Capital and Morgan Stanley & Co were financial advisers to First Horizon, while UBS Investment Bank advised Capital Bank. It opened a Raleigh branch in 2013 and expanded its local network when it acquired Raleigh-based TrustAtlantic Bank for $80 million in 2015.

The stock and cash deal, valued at $2.2 billion, will create a bank with more than 360 branches in the Carolinas, Tennessee, Florida and Virginia.

In a statement, First Horizon CEO Bryan Jordan said the combination with Capital Bank will help his company, the biggest bank in Tennessee by deposits, more quickly achieve its "critical" financial targets.

The current version of Capital Bank got its start in 2009 when two former Bank of America executives, including former Vice Chairman Gene Taylor, formed North American Financial Holdings and raised $900 million from investors to acquire troubled banks. Over the years, Capital Bank has developed bigger presences in places such as Miami, Raleigh and Nashville, Tenn., than in Charlotte, where Taylor and Marshall have lived since the company's founding. He was CEO of Capital Bank before becoming a founder and CEO of TrustAtlantic.

The merger is expected to close in the fourth quarter.

In the meantime, she said, "Capital was in the process of closing 18 branches this year throughout their footprint". Based on Wednesday's closing prices, that values Capital Bank shares at $40.835 each, which is 2.9% below Wednesday's closing price of $42.05.

The acquisition been approved by the boards of both companies.