Robbins Arroyo LLP: Acquisition of Wilshire Bancorp, Inc. (WIBC) by BBCN Bancorp, Inc. (BBCN) May Not Be in Shareholders' Bes...
08 December 2015 - 7:08AM
Business Wire
Shareholder rights attorneys at Robbins Arroyo LLP are
investigating the proposed acquisition of Wilshire Bancorp Inc.
(NASDAQ: WIBC) by BBCN Bancorp Inc. (NASDAQ: BBCN). On December 7,
2015, the two companies announced the signing of a definitive
merger agreement pursuant to which BBCN Bancorp will acquire
Wilshire Bancorp. Under the terms of the agreement, Wilshire
Bancorp shareholders will receive 0.7034 shares of BBCN for each
share of Wilshire Bancorp they own, the value of which is
equivalent to $13.00 per share of Wilshire Bancorp.
View this information on the law firm's Shareholder Rights Blog:
https://www.robbinsarroyo.com/shareholders-rights-blog/wilshire-bancorp-inc/
Is the Proposed Acquisition Best for Wilshire Bancorp and Its
Shareholders?
Robbins Arroyo LLP's investigation focuses on whether the board
of directors at Wilshire Bancorp is undertaking a fair process to
obtain maximum value and adequately compensate its
shareholders.
As an initial matter, the $13.00 merger consideration represents
a premium of only 8.0% based on Wilshire Bancorp's one-week average
closing price. This premium is significantly below the average
one-week premium of nearly 32.4% for comparable transactions within
the past five years. Most recently, Wilshire Bancorp traded above
the merger consideration – at $13.02 – on July 16, 2015.
On October 19, 2015, Wilshire Bancorp reported strong earnings
results for its third quarter 2015. Total interest income for the
quarter was $44.2 million, an increase of 7.0% compared to the same
period last year. Total loans receivable were $3.6 billion, an
increase of 15% compared to the same period last year. In
commenting on these results, Wilshire Bancorp President and Chief
Executive Officer Jae Whan Yoo remarked, "We had a very strong
quarter of business development with more than $400 million in
total loan production. We continue to make progress in building our
commercial lending platform, which resulted in more than $100
million in C&I loan production in the third quarter, the
highest quarterly production in our history. We are also seeing
increasing production from our residential mortgage lending
business, which originated over $100 million in loans during the
third quarter. The progress we are making in building our C&I
and residential mortgage lending businesses is helping us to
achieve the more diversified loan portfolio that we are
targeting."
In light of these facts, Robbins Arroyo LLP is examining
Wilshire Bancorp's board of directors' decision to sell the company
now rather than allow shareholders to continue to participate in
the company's continued success and future growth prospects.
Wilshire Bancorp shareholders have the option to file a class
action lawsuit to ensure the board of directors obtains the best
possible price for shareholders and the disclosure of material
information. Wilshire shareholders interested in information about
their rights and potential remedies can contact attorney Darnell R.
Donahue at (800) 350-6003, ddonahue@robbinsarroyo.com, or via the
shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in
securities litigation and shareholder rights law. The law firm
represents individual and institutional investors in shareholder
derivative and securities class action lawsuits, and has helped its
clients realize more than $1 billion of value for themselves and
the companies in which they have invested.
Attorney Advertising. Past results do not guarantee a similar
outcome.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20151207006308/en/
Robbins Arroyo LLPDarnell R. Donahue(619) 525-3990 or Toll Free
(800) 350-6003ddonahue@robbinsarroyo.comwww.robbinsarroyo.com
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