First Citizens proposes to acquire KS Bancorp for $35 per share in cash
First Citizens BancShares (FCNCA) said it has made a proposal to acquire KS Bancorp (KSBI) for $35.00 per share in cash, in a transaction valued at approximately $45.8M, representing a 49.6% premium over KS Bancorp’s (KSBI) closing trading price on July 12, 2017, and a 84% premium over KS Bancorp’s book value per share as of March 31, 2017.
The proposal was conveyed today in a letter to KS Bancorp’s Board of Directors. First Citizens has decided to make its proposal public in order to inform KS Bancorp’s shareholders of the compelling proposal that would provide immediate liquidity to them at a substantial premium to book value and the market’s assessment of KS Bancorp’s value.
“Our objective is to engage in substantive discussions with KS Bancorp and conduct customary due diligence so that we and KS Bancorp can together quickly bring this compelling transaction to KS Bancorp’s shareholders,” said Frank B. Holding, Jr., chairman and CEO of First Citizens.
“We are disappointed by KS Bancorp’s rejection of our offer without any discussion, and were surprised that the reason given for this was a contemplated S corporation reorganization that we understand would involve a buyout of a significant number of KS Bancorp shareholders. We believe that KS Bancorp shareholders will favor the immediate liquidity at a substantial premium that our acquisition proposal would provide.”
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