Territorial Bancorp Reaffirms Commitment to Its Merger Plans
Today, Territorial Bancorp Inc. reiterated its Board of Directors' firm dedication to merging with Hope Bancorp, Inc. This comes in light of an unsolicited offer from Blue Hill Advisors LLC to acquire Territorial. As the situation continues to develop, the Board believes that merging with Hope represents a safer and more advantageous option for the future.
Addressing the Unsolicited Offer
In the announcement, Allan S. Kitagawa, who is the Chairman, CEO, and President of Territorial, stated that although Blue Hill’s proposal had a slightly higher purchase price, it is weighed down by significant uncertainties. "The Board carefully reviewed the unsolicited letter on two occasions. With the help of independent legal and financial advisors, we found the Blue Hill proposal to be speculative and highly uncertain compared to the well-structured merger agreement with Hope," Kitagawa explained.
Key Issues with Blue Hill's Proposal
Blue Hill's proposal raised several significant concerns:
The proposal lacked transparency, as it came from a group of mostly unnamed investors who did not provide any proof of financial support.
There was no confirmation that this unidentified group could secure the necessary regulatory approvals on time, if at all.
The proposal was contingent upon several conditions, such as passing due diligence and getting a minimum tender offer from 70% of Territorial’s outstanding shares, making it much less appealing. In contrast, the merger with Hope has undergone thorough evaluation with very few additional conditions before completion.
Given these factors, the Board decisively rejected the Blue Hill proposal, stating that pursuing the merger with Hope is in the best interests of the shareholders.
Building Stronger Connections and Improving Services
The merger aims to create a synergy between the two companies, both focused on their respective customers and communities. Clients of Territorial can look forward to continued advantages stemming from the bank’s dedication to solid relationship banking, personalized service, and tailored financial solutions.
In addition to its ongoing commitment to clients, this proposed union is expected to strengthen Territorial’s operations. Collaborating with Hope will provide access to larger organizational resources, advanced technology, and a wider array of banking products and services, offering long-term benefits for both customers and employees.
Details on the Hope Merger
In connection with the developments regarding the proposed merger, Hope has filed a Registration Statement on Form S-4 with the U.S. Securities and Exchange Commission (SEC), which includes the Proxy Prospectus. This document is now available to Territorial’s shareholders. Interested individuals are encouraged to review the Proxy Prospectus and related documents carefully, as they contain vital information about the transaction.
Stay Connected with Territorial Bancorp
Territorial Bancorp Inc. serves as the stock holding company for Territorial Savings Bank, which has been catering to clients since 1921 from its headquarters and 28 branch offices across the state. The bank is committed to enhancing its service offerings while prioritizing customer relationships.
Frequently Asked Questions
What is the current status of the merger between Territorial and Hope Bancorp?
The merger has strong support from the Board of Directors of Territorial Bancorp, despite competing proposals.
What led to the rejection of Blue Hill’s proposal?
The Board found Blue Hill’s offer lacking transparency, unverified financial backing, and excessive conditions that rendered it speculative.
How will the merger benefit Territorial Bancorp’s customers?
Customers can expect improved resources, technology, and a wider range of products and services as part of a larger organization.
Where can I find more information about the proposed merger?
Information is available in the Proxy Prospectus filed with the SEC, along with other relevant materials provided by Hope and Territorial.
What has been the company’s longest-standing commitment?
Territorial Bancorp has a long history of commitment to relationship banking, putting emphasis on personalized financial solutions for its customers.