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Estate selling Kamehameha Schools has agreed to sell its 24 percent stake in a California savings and loan institution for $47.6 million.
24% stake in
Calif. bank
Kamehameha Schools will
get $47.6 million for its
holdings in the S&LFrom staff and wire reports
PBOC Holdings Inc., parent of the $3.3 billion People's Bank of California, said today that the trust will sell its nearly 4.8 million shares of PBOC for $10 each. The buyer is FBOP Corp. of Oak Park, Ill., an affiliate of First Bank of Oak Park.
Based on today's trading, FBOP will pay a premium of $2 a share for the Kamehameha stake. PBOC closed today at $8, up $1.
In 1992, Kamehameha Schools bought 7.6 million shares of PBOC, then known as SoCal Holdings Inc., for $30 million. Kamehameha had to put in $42.5 million in additional capital in 1995 to bring the bank up to federal standards.
However, it sold some of its shares for an undisclosed price, was paid more than $11 million in payments on senior notes that it owned, and has been paid millions more in dividends. When PBOC went public in May 1998, Kamehameha immediately gained some $60 million.
The estate said the current stake in PBOC that it is selling represents about $12 million of its original $30 million investment.
Los Angeles-based PBOC was not doing well financially when Kamehameha Schools, then known mostly as Bishop Estate, invested in it. The recovery of the California economy, however, helped the bank turn around and it became profitable.
PBOC lost $6 million in the latest quarter as it got rid of some low-yield investments, but had a profit of $29.8 million through the first nine months of this year, up 37 percent from a profit of $21.7 million in the nine months of 1999.
The sale of the Kamehameha Schools stake is subject to certain approvals, including authorization by savings and loan regulators.
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