Citizens Financial Corporation to Engage in 'Going-Private' Transaction
July 02 2007 - 6:02PM
PR Newswire (US)
LOUISVILLE, Ky., July 2 /PRNewswire-FirstCall/ -- Citizens
Financial Corporation (NASDAQ:CNFL) (the "Company") announced today
it will be engaging in what is commonly referred to as a "going
private" transaction. The purpose of the transaction will be to
deregister the Company's Class A common stock with the Securities
and Exchange Commission (the "SEC"), which will allow the Company
to cease filing reports with the SEC. In order to deregister its
shares, the Company will need to reduce its record number of Class
A shareholders to below 300. To accomplish this, the Company's
board of directors has proposed a 1-for-250 reverse stock split
that will have the effect of reducing the Company's number of
record Class A shareholders from approximately 2,388 to
approximately 159. Fractional shares resulting from the proposed
reverse stock split will not be issued, but will instead be
purchased by the Company at a purchase price of $7.25 per share for
each share of Class A common stock that becomes a fractional share
as a result of the reverse stock split. The Company's board
believes that deregistering the Company's shares will significantly
reduce its securities-related regulatory compliance costs, which
primarily include legal and auditing fees, as well as internal
costs associated with document preparation and review. The Company
expects to repurchase approximately 170,331 of its 1,586,111
currently outstanding shares of Class A common stock as part of the
proposed transaction, which is subject to shareholder approval. The
Company expects to hold a special meeting prior to the end of 2007
to allow shareholders to vote on this matter. The estimated cost of
the repurchase of the fractional shares in the reverse stock split
is approximately $1,234,900, which the Company plans to finance
with borrowings against a line of credit. Citizens Financial
Corporation is a holding company that engages in the business of
life insurance, annuities, and accident and health insurance
through its life insurance subsidiaries, primarily Citizens
Security Life Insurance Company. Certain matters discussed in this
press release are "forward-looking statements" intended to qualify
for the safe harbors from liability established by the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements can generally be identified as such because they will
include words such as "intends," "believes," "anticipates" or
"expects," or words of similar import. Such forward-looking
statements are subject to certain risks and uncertainties which
could cause actual results to differ materially from those
currently anticipated. Such risks and uncertainties include, among
others, the Company's ability to complete the going private
transaction in a timely manner or at all, the failure of the
Company's shareholders to approve the proposed transaction, the
risk that the cost savings from the proposed transaction may not be
fully realized or may take longer to realize than expected, and
other factors discussed in the Company's filings with the SEC.
Investors should consider these factors carefully in evaluating the
forward-looking statements and are cautioned not to place undue
reliance on such forward-looking statements. THIS RELEASE IS NOT A
REQUEST FOR A PROXY OR AN OFFER TO ACQUIRE OR SELL ANY SECURITIES.
THE PROPOSED TRANSACTION WILL BE SUBMITTED TO SHAREHOLDERS OF THE
COMPANY FOR THEIR CONSIDERATION. THE COMPANY WILL FILE A
PRELIMINARY PROXY STATEMENT AND OTHER RELEVANT DOCUMENTS CONCERNING
THE PROPOSED TRANSACTION WITH THE SEC AND WILL FILE A DEFINITIVE
PROXY STATEMENT AND RELATED DOCUMENTS UPON COMPLETION OF SEC
REVIEW. THE PROXY STATEMENT WILL BE SENT TO ALL SHAREHOLDERS
ENTITLED TO VOTE ON THE TRANSACTION. YOU ARE URGED TO READ THE
PROXY STATEMENT 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, AS WELL AS OTHER FILINGS CONTAINING INFORMATION ABOUT
THE COMPANY, AT THE SEC'S INTERNET SITE (http://www.sec.gov/).
COPIES OF THE PROXY STATEMENT CAN BE OBTAINED, WHEN AVAILABLE AND
WITHOUT CHARGE, BY DIRECTING A REQUEST TO CITIZENS FINANCIAL
CORPORATION, 12910 SHELBYVILLE ROAD, SUITE 300, LOUISVILLE,
KENTUCKY 40243, ATTN: SECRETARY. INFORMATION REGARDING THE
COMPANY'S DIRECTORS AND EXECUTIVE OFFICERS IS INCLUDED OR
INCORPORATED BY REFERENCE IN THE COMPANY'S ANNUAL REPORT ON FORM
10-K FOR THE YEAR ENDED DECEMBER 31, 2006 AND IN ITS PROXY
STATEMENTS FOR ITS ANNUAL AND SPECIAL MEETINGS OF SHAREHOLDERS AS
FILED WITH THE SEC. DATASOURCE: Citizens Financial Corporation
CONTACT: Len E. Schweitzer, CFO, Citizens Financial Corporation,
+1-502-244-2420
Copyright
Citizens Financial (MM) (NASDAQ:CNFL)
Historical Stock Chart
From Apr 2024 to May 2024
Citizens Financial (MM) (NASDAQ:CNFL)
Historical Stock Chart
From May 2023 to May 2024