Santa Clarita Shareholders OK Security Pacific Deal
Shareholders of Santa Clarita National Bank voted unanimously on Oct. 26 to approve a merger agreement with Security Pacific Corp. of Los Angeles.
But the vote doesn’t guarantee that the merger will go through. The agreement would allow Santa Clarita National, which has 11 branches, to back out of the deal if Security Pacific’s stock is below an average of $26 for the five days prior to closing of the deal, now set for Nov. 15. Security Pacific’s stock has recently traded for less than $20, closing Monday at $17.75 per share.
Security Pacific first announced in March that it had agreed to acquire Santa Clarita National for $52.5 million in stock. But Security Pacific’s stock has fallen precipitously since then, like that of many banks nationwide.
With the decline in its stock price, Security Pacific has now agreed to pay a maximum of about 1.75 million shares to acquire Santa Clarita National.
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