UCBH Holdings, Inc. Signs Definitive Agreement to Acquire Asian American Bank & Trust Company
biz.yahoo.com
Wednesday August 3, 6:00 am ET
Acquisition Marks Entry Into the New England Market
SAN FRANCISCO & BOSTON--(BUSINESS WIRE)--Aug. 3, 2005--UCBH Holdings, Inc. (Nasdaq:UCBH), the holding company of United Commercial Bank (UCB(TM)), today announced that it has signed a definitive agreement to acquire Asian American Bank & Trust Company (OTCBB:AABT) in a transaction valued at approximately $34.3 million. AABT, a commercial bank headquartered in Boston, Massachusetts, operates three full-service branches in the Greater Boston area including Chinatown, Allston and Quincy. AABT had assets of $127.1 million and deposits of $106.2 million as of June 30, 2005.
"The New England market has a large and rapidly growing Asian-American population and is one of the markets we targeted for expansion. The proposed acquisition of Asian American Bank & Trust Company reflects our strategic move to enter this dynamic market," said Thomas S. Wu, Chairman, President and Chief Executive Officer of UCBH Holdings, Inc. "The Asian American Bank franchise complements that of United Commercial Bank, and we share similar commitments and values in providing the highest quality banking services to our customers."
"The Board of Asian American Bank has voted unanimously to approve this transaction," said Raymond Tung, President and Chief Executive Officer of Asian American Bank & Trust Company. "We are extremely excited about this partnership as the vast resources of United Commercial Bank will enable us to deliver a broader range of products and higher quality of banking services to our customers in the New England market. The common focus and values that we share between our two institutions will continue to benefit our constituencies in the years ahead."
The agreement has been approved by the Board of Directors of each company. Under the terms of the agreement announced today, AABT will be merged into UCBH's subsidiary United Commercial Bank, for total consideration of approximately $34.3 million (as of the recent closing price for UCBH common stock), comprised of the issuance of UCBH common stock valued at approximately $16.1 million and approximately $18.2 million in cash, subject to certain adjustments detailed in the definitive agreement. The proposed transaction is subject to review if, during the pricing period prior to the closing date, the price of UCBH common shares falls below $14.75 or exceeds $22.12. UCBH has negotiated a retention agreement with Raymond Tung.
The transaction, which is subject to approval by AABT's shareholders and regulatory approval, is anticipated to close in the first quarter of 2006. UCBH management expects the proposed transaction to be marginally accretive to earnings per share in 2006 and thereafter. |
