Citadel Holding Completes Stock Offering

Citadel Holding Corp. in Glendale said it completed its offering of 3.3 million shares of common stock under a rights offering to its shareholders, raising $31.5 million in net proceeds for the savings and loan.

The new shares were issued at $10 each. All but 18,606 shares in the offering were purchased.

Citadel said $18 million would be used to boost the capital of its subsidiary, Fidelity Federal Bank. The balance would be used by Citadel for working capital.

The thrift holding company said its largest stockholder, Santa Cruz Resources Inc., did not participate in the offering, which has effectively reduced its stake in Citadel from 22% to 11%. It said Santa Cruz Resources also plans to sell some of its Citadel stock.

Citadel also said its second largest shareholder, Hecco Ventures I, a limited partnership, sold its entire 9.6% stake in Citadel common stock. The shares were sold for between $21.25 and $21.63 a share from March 25 to 29.