Investors Bancorp and American Bancorp of New Jersey Announce Revised Merger Agreement
March 16 2009 - 5:25PM
PR Newswire (US)
SHORT HILLS, N.J. and BLOOMFIELD, N.J., March 16
/PRNewswire-FirstCall/ -- Investors Bancorp, Inc. (NASDAQ:ISBC) and
American Bancorp of New Jersey, Inc. (NASDAQ:ABNJ) jointly
announced today they have amended the merger agreement for
Investors Bancorp to acquire American Bancorp of New Jersey. Under
the revised terms of the merger agreement, which has been approved
by the boards of directors of both companies, 65% of American
Bancorp shares will be converted into Investors Bancorp common
stock and the remaining 35% will be converted into cash, compared
to a 70% stock and 30% cash consideration mix as set forth in the
original merger agreement. The exchange ratio of 0.9218 share of
Investors Bancorp common stock for each share of American Bancorp
common stock (for those American Bancorp shareholders who are to
receive Investors Bancorp common stock) remains unchanged. Based on
Investors Bancorp's closing stock price of $7.90 on March 12, 2009,
each share of American Bancorp common stock would be valued at
approximately $9.11, with the aggregate merger consideration
totaling $99 million. Investors Bancorp expects the decline in
transaction value from the original merger agreement date to the
amended agreement date will reduce the amount of goodwill created
in the transaction from approximately $56 million to approximately
$13 million, increase the anticipated internal rate of return on
the transaction from the lower teens to in excess of 20%, and
reduce the dilution to fully converted tangible book value from 4%
to 3%. The impact on Investors Bancorp's earnings is not expected
to differ materially from previously announced expectations
regarding the original transaction structure. The companies also
agreed to modify the termination conditions with respect to a
decline in Investors Bancorp common stock price. As amended, the
agreement allows American Bancorp to terminate the transaction in
the event of an absolute decline in Investors common stock of 30%,
and a 30% relative decline to the SNL Thrift Index (subject to
right of Investors Bancorp to "fill"). Prior to this amendment,
American Bancorp could terminate the agreement in the event of a
20% absolute decline in Investors Bancorp stock price and a 20%
relative decline to the SNL Thrift Index. The methodology in
calculating the fill provision was also amended. The transaction is
expected to close during the second calendar quarter of 2009,
subject to customary closing conditions, including regulatory
approvals and approval by American Bancorp's shareholders.
Citigroup Global Markets Inc. acted as financial advisor to
Investors Bancorp, and Luse, Gorman, Pomerenk & Schick, P.C.
acted as legal advisor. Keefe, Bruyette & Woods, Inc. acted as
financial advisor to American Bancorp of New Jersey, and Silver
Freedman & Taff, L.L.P. acted as legal advisor. About Investors
Bancorp Investors Bancorp, Inc. is the holding company for
Investors Savings Bank (the "Bank"), a New Jersey chartered savings
bank which operates from its corporate headquarters in Short Hills,
New Jersey, and fifty-three branch offices located in Essex,
Hunterdon, Middlesex, Monmouth, Morris, Ocean, Somerset, Union and
Warren Counties, New Jersey. About American Bancorp of New Jersey
American Bancorp of New Jersey, Inc. is a New Jersey corporation
organized in May 2005 for the purpose of being the holding company
for American Bank of New Jersey, a federally-chartered stock
savings bank. American Bancorp maintains its headquarters and one
full service bank branch in Bloomfield, New Jersey with four
additional branch locations in Cedar Grove, Verona, Nutley and
Clifton, New Jersey. Forward-Looking Statements Certain statements
contained herein are "forward looking statements" within the
meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934. Such forward looking
statements may be identified by reference to a future period or
periods, or by the use of forward looking terminology, such as
"may," "will," "believe," "expect," "estimate," "anticipate,"
"continue," or similar terms or variations on those terms, or the
negative of those terms. Forward looking statements are subject to
numerous risks, as described in Investors Bancorp's SEC filings,
and uncertainties, including, but not limited to, those related to
the real estate and economic environment, particularly in the
market areas in which Investors Bancorp operates, competitive
products and pricing, fiscal and monetary policies of the U.S.
Government, changes in government regulations affecting financial
institutions, including regulatory fees and capital requirements,
changes in prevailing interest rates, acquisitions and the
integration of acquired businesses, credit risk management,
asset-liability management, the financial and securities markets
and the availability of and costs associated with sources of
liquidity. Investors Bancorp wishes to caution readers not to place
undue reliance on any such forward looking statements, which speak
only as of the date made. Investors Bancorp wishes to advise
readers that the factors listed above could affect Investors
Bancorp's financial performance and could cause Investors Bancorp's
actual results for future periods to differ materially from any
opinions or statements expressed with respect to future periods in
any current statements. Investors Bancorp does not undertake and
specifically declines any obligation to publicly release the
results of any revisions, which may be made to any forward looking
statements to reflect events or circumstances after the date of
such statements or to reflect the occurrence of anticipated or
unanticipated events. Additional Information Investors Bancorp will
file a registration statement, a proxy statement/prospectus and
other relevant documents concerning the proposed transaction with
the Securities and Exchange Commission (the "SEC"). Shareholders
are urged to read the registration statement and the proxy
statement/prospectus when it becomes available and any other
relevant documents filed with the SEC, as well as any amendments or
supplements to those documents, because they will contain important
information. You will be able to obtain a free copy of the proxy
statement/prospectus, as well as other filings containing
information about Investors Bancorp and American Bancorp at the
SEC's Internet site (http://www.sec.gov/). Copies of the proxy
statement/prospectus to be filed by Investors Bancorp also can be
obtained, when available and without charge, by directing a request
to Investors Bancorp, Inc., Attention: Domenick Cama, EVP and Chief
Operating Officer, 101 JFK Parkway, Short Hills, NJ 07078, (973)
924-5105, or to American Bancorp of New Jersey, Attention: Eric
Heyer, SVP and Chief Financial Officer, 365 Broad Street,
Bloomfield, New Jersey 07003, (973) 748-3600. American Bancorp,
Investors Bancorp and their respective directors and executive
officers may be deemed to be participants in the solicitation of
proxies from the shareholders of American Bancorp in connection
with the acquisition. Information about the directors and executive
officers of American Bancorp and their ownership of American
Bancorp common stock is set forth in American Bancorp's most recent
proxy statement as filed with the SEC, which is available at the
SEC's Internet site (http://www.sec.gov/) and at American Bancorp
at the address in the preceding paragraph. Information about the
directors and executive officers of Investors Bancorp is set forth
in Investors Bancorp's most recent proxy statement filed with the
SEC and available at the SEC's Internet site and from Investors
Bancorp at the address set forth in the preceding paragraph.
Additional information regarding the interests of these
participants may be obtained by reading the joint proxy
statement/prospectus regarding the proposed transaction when it
becomes available. Source: Investors Bancorp, Inc. (NASDAQ:ISBC)
DATASOURCE: Investors Bancorp, Inc. CONTACT: Domenick Cama, EVP and
Chief Operating Officer of Investors Bancorp, +1-973-924-5105 or
Eric Heyer, SVP and Chief Financial Officer of American Bancorp of
New Jersey, +1-973-748-3600
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