Robbins Arroyo LLP: Acquisition of Cape Bancorp Incorporated (CBNJ) by OceanFirst Financial Corporation (OCFC) May Not Be in Shareholders’ Best Interests
Robbins Arroyo LLP is investigating the proposed acquisition of Cape Bancorp Inc. (NASDAQ: CBNJ) by OceanFirst Financial Corp. (NASDAQ: OCFC). On January 5, 2016, the two companies announced the signing of a definitive merger agreement pursuant to which OceanFirst will acquire Cape Bancorp. Under the terms of the agreement, Cape Bancorp shareholders will receive $2.25 in cash and 0.6375 shares of OceanFirst for each share of Cape Bancorp common stock, the value of which is equivalent to $15.00 per share of Cape Bancorp.
Is the Proposed Acquisition Best for Cape Bancorp and Its Shareholders?
Robbins Arroyo LLP’s investigation focuses on whether the board of directors at Cape Bancorp is undertaking a fair process to obtain maximum value and adequately compensate its shareholders.
As an initial matter, the $15.00 merger consideration represents a premium of only 20.3% based on Cape Bancorp’s average one-month closing price. This premium is significantly below the average one-month premium of nearly 37.5% for comparable transactions within the past five years.
On October 23, 2015, Cape Bancorp reported strong earnings results for its third quarter 2015. Interest income for the quarter was $13.7 million, an increase of 36% compared to the same period last year. Net income for the quarter was $3.1 million, an increase of 82% compared to the same period last year.
In light of these facts, Robbins Arroyo LLP is examining Cape Bancorp’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.
Cape Bancorp 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.
Cape Bancorp 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.
Send This Post