C1 Financial, Inc.
Robbins Arroyo LLP: Acquisition of C1 Financial, Inc. (BNK) by Bank of the Ozarks, Inc. (OZRK) May Not Be in Shareholders’ Best Interests
Robbins Arroyo LLP is investigating the proposed acquisition of C1 Financial, Inc. (NYSE: BNK) by Bank of the Ozarks, Inc. (Nasdaq: OZRK). On November 9, 2015, the two companies announced the signing of a definitive merger agreement pursuant to which Bank of the Ozarks will acquire C1 Financial. Under the terms of the agreement, C1 Financial shareholders will receive shares of Bank of the Ozarks for each share of C1 Financial they own, the value of which is equivalent to $25.00 for each share of C1 Financial common stock.
Is the Proposed Acquisition Best for C1 Financial and Its Shareholders?
Robbins Arroyo LLP’s investigation focuses on whether the board of directors at C1 Financial is undertaking a fair process to obtain maximum value and adequately compensate its shareholders.
As an initial matter, the $25.00 merger consideration represents a premium of only 20.4% based on C1 Financial’s one-week average closing price. This premium is significantly below the average one-week premium of nearly 27.0% for comparable transactions within the past year.
On October 15, 2015, C1 Financial reported strong earnings results for its third quarter 2015. Net income was $5.0 million, a 90.6% increase over the third quarter 2014. Core deposits grew $44.0 million, up 4.6% from the previous quarter. In commenting on these results, Trevor Burgess, President and Chief Executive Officer of C1 Financial remarked, “We are excited by our strong results in the third quarter as we grow our earning assets and leverage our infrastructure. Our deposit growth in the third quarter will provide needed funding for the strong pipeline of new loan relationships as we head into the end of the year. C1 Labs technology has contributed to productivity gains that has allowed us to reduce our retail network headcount by approximately 10%, which should allow us to reach best in class levels of assets and revenue per employee over the long term.”
In light of these facts, Robbins Arroyo LLP is examining C1 Financial’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.
C1 Financial 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.
C1 Financial shareholders interested in information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.