The stock price of Popular, Inc. (BPOP - Snapshot Report) rose 3.4% following the sale of 5.8 million common shares of its payment processing and merchant acquiring subsidiary EVERTEC, Inc. (EVTC - Snapshot Report) on Dec 13. The transaction was a part of EVERTEC’s public offering of 15,233,273 shares at $20.60 per share.
Popular received total cash proceeds of nearly $118 million (excluding underwriting discounts) from this deal. This one-time gain will be reflected as a tax gain of approximately $99 million in the company’s fourth-quarter 2013 earnings results.
Apollo Global Management, LLC (APO - Snapshot Report) , Popular and some of the officers and employees of EVERTEC vended their stake in the aforementioned public offering. EVERTEC itself repurchased nearly 3.7 million of its common shares sold by the stockholders from the underwriters.
Apollo vended nearly 9.2 million shares in the offering. Though it has not been officially declared, as per a report in Bloomberg, Apollo was expected to book a huge profit of 400% or around $730 million from this move. This stake sale will expectedly fetch Apollo around $917 million in cumulative proceeds, a return that will be five times its $184 million investment in EVERTEC.
Further, Apollo garnered around $260 million and $301 million from EVERTEC’s initial public offering (IPO) in April and the following stock offering in September, respectively. The company was also paid dividend amounting to $162 million.
Popular, EVERTEC and Apollo all have a Zacks Rank #3 (Hold). A financial stock worth a considering is Artisan Partners Asset Management Inc. (APAM - Snapshot Report) , which has a Zacks Rank #1 (Strong Buy).