Korea Exchange Bank Completes Capital Infusion and Transfers its Shares of Pacific Union Bank to Trustee
November 03 2003 - 8:01AM
PR Newswire (US)
Korea Exchange Bank Completes Capital Infusion and Transfers its
Shares of Pacific Union Bank to Trustee LOS ANGELES, Nov. 3
/PRNewswire-FirstCall/ -- PACIFIC UNION BANK has been advised that
Korea Exchange Bank, which holds approximately 62% of Pacific Union
Bank's outstanding shares, has received the previously announced
capital infusion from Lone Star Fund IV (U.S.), L.P. and its
affiliates (collectively, "Lone Star"), which results in Lone Star
holding a majority of the outstanding voting stock of Korea
Exchange Bank. Pacific Union Bank has been advised that Korea
Exchange Bank has placed all of the shares of common stock it holds
in Pacific Union Bank into a trust pursuant to a trust agreement
entered into between Korea Exchange Bank and the trustee, Mr. L.
Dale Crandall. While Korea Exchange Bank retains all of the
economic interest in the Pacific Union Bank shares being
transferred to the trust, the trust agreement gives the trustee
voting and dispositive power over Korea Exchange Bank's shares in
Pacific Union Bank and directs the trustee to dispose of all or
substantially all of such interest either directly through a sale
or in connection with a merger or similar transaction of Pacific
Union Bank with a third party. Mr. Crandall has engaged Merrill
Lynch as financial advisor and Skadden, Arps, Slate, Meagher &
Flom as legal counsel in connection with any such disposition. The
transfer of the shares to the trustee does not affect the
day-to-day business and operations of Pacific Union Bank. Pacific
Union Bank also announced that its Board of Directors has appointed
a Special Committee comprised of its independent, outside directors
who are not affiliated with Korea Exchange Bank to evaluate any
potential transaction that may involve Pacific Union Bank. The
Special Committee will participate with the trustee in evaluating
possible alternatives and transactions. The Special Committee has
engaged Friedman, Billings, Ramsey & Co., Inc. as its financial
advisor and Manatt, Phelps & Phillips, LLP as legal counsel.
There can be no assurance that any disposition by the trustee of
Korea Exchange Bank's interest in Pacific Union Bank will involve a
merger or similar transaction of Pacific Union Bank. Pacific Union
Bank is a California state chartered commercial bank headquartered
in Los Angeles, California, which commenced operations in September
1974. The Bank's primary market includes the greater Los Angeles
metropolitan area, Orange County, Santa Clara County and the San
Francisco metropolitan area. Through its network of 12 full-service
branch offices, and a loan production office in Seattle,
Washington, the Bank provides a wide range of commercial and
consumer banking services to the Korean-American communities. The
Bank's primary focus is on its core customer base of small and
medium sized Korean-American businesses, professionals and other
individuals. The Bank places a particular emphasis on the growth of
its low cost core-deposit base and the origination of commercial
and residential real estate loans. For additional information,
visit the website for Pacific Union Bank located at
http://www.pacificunionbank.com/. This Release contains statements
that constitute "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. The words
"believe", "estimate", "expect", "intend", "anticipate", and
similar expressions and variations thereof identify certain of such
forward-looking statements which speak only as of the dates which
they were made. The Bank undertakes no obligation to publicly
update or revise any forward-looking statements, whether as a
result of new information future events or otherwise. Readers are
cautioned that any such forward-looking statements are not
guarantees of future performance and involve risks and
uncertainties, and that actual results may differ materially from
those indicated in the forward-looking statements as a result of
various factors. Readers are cautioned to not place undue reliance
on these forward-looking statements. DATASOURCE: Pacific Union Bank
CONTACT: David Warner, President and Chief Executive Officer of
Pacific Union Bank, +1-213-386-4574 Web site:
http://www.pacificunionbank.com/
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