‘Strictly for Investment,’ Irvine Firm Says : AFG Has 6% Interest in Arizona Thrift
AFG Industries Inc. of Irvine said it now holds a 6% stake in First Federal Savings Bank of Arizona and intends to make further purchases of the thrift’s common stock.
AFG revealed in a filing with the Securities and Exchange Commission that its stake comprises 353,650 First Federal common shares and $3 million of the thrift’s 12 1/2% convertible subordinated debentures, which are convertible into 121,739 common shares.
The glass manufacturer said any further purchases of First Federal stock will be made on the open market or in privately negotiated transactions. The company said it hasn’t filed with the Federal Home Loan Bank for permission to acquire 10% or more of First Federal, a move required when amassing such a position in a savings and loan. First Federal has about 6.5 million common shares outstanding.
Gary Miller, AFG’s treasurer, said the First Federal purchases were made “strictly for investment.” Funds for the purchases came from accumulated cash, he added.
In Phoenix, Gene E. Rice, First Federal’s chairman, president and chief executive, said that conversations with AFG have been “very friendly.” AFG’s stake has varied from 5 to 7% in recent months, Rice pointed out.
In composite trading Wednesday on the New York Stock Exchange, First Federal closed at $24, up $2.50. In over-the-counter trading, AFG closed at $18, unchanged for the day.
AFG said second-quarter, 1985 profits rose 12% to a record $4.8 million from $4.3 million for the same period a year earlier. Sales for the period were up 10% to $76.1 million from $68.9 million a year earlier.
Last year, AFG moved its headquarters to Irvine from Kingsport, Tenn.