PrivateBancorp, Inc. announced that its shareholders have finally approved its acquisition by Canadian Imperial Bank of Commerce (CM - Free Report) in the shareholder meeting held on May 12, after two amendments. The transaction is expected to close in Jun 2017 and Canadian Imperial will pay $27.20 in cash and 0.4176 of its share for each share of PrivateBancorp.
The acquisition will be complete upon closing of certain conditions, which includes approval by federal banking regulators in the U.S and CIBC's banking regulator in Canada. Notably, on May 3, the Illinois Department of Financial and Professional Regulation, Division of Banking, approved the transaction.
James M. Guyette, Chairman of PrivateBancorp, said, "We are pleased with the outcome of today's vote and thank our stockholders for their support." He further added, "This strategic combination creates meaningful value for stockholders, and we look forward to completing the transaction in June."
President and Chief Executive Officer, Larry D. Richman, said, "This will make our strong bank even stronger with the same commitment to building long-term client relationships, the same experienced team, and the same dedication to Chicago and all of the communities we serve. We look forward to working with CIBC to successfully complete the transaction and realize the full benefits of the combination for all stakeholders."
Canadian Imperial had to amend the terms of the transaction twice because PrivateBancorp did not consider the original deal, which was entered into in June 2016 for $18.80 in cash and 0.3657 of Canadian Imperial’s share for each of its share, to be fruitful enough. This is because the improving market scenario led shares of most companies to rise since the Presidential elections. Accordingly, the original deal price seemed to be unfavorable.
Nevertheless, the price which has been finalized is the best offer that Canadian Imperial could provide.
Notably, shares of PrivateBancorp gained 51.8% in the last one year, outperforming the 32.5% growth for the Zacks categorized Banks - Midwest industry.
Currently, PrivateBancorp carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A couple of other stocks in the same space worth considering are Wintrust Financial Corporation (WTFC - Free Report) and Enterprise Financial Services Corp (EFSC - Free Report) . Both currently carry a Zacks Rank #2.
Wintrust Financial witnessed an upward earnings estimate revision of 3.9% for the current year in the last 60 days. Moreover, its shares gained approximately 13.7% in the last six months.
Enterprise Financial’s current year earnings estimates have been revised 1.9% upward in the last 60 days and its share price also gained 13.7% in the last six months.
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