Popular, Inc. Announces Completion of Sale of Majority Interest in EVERTEC to Funds Managed by Apollo Management, L.P.
September 30 2010 - 3:52PM
Business Wire
Popular, Inc. (NASDAQ:BPOP) announced today the completion of
the merger pursuant to which funds managed by Apollo Management,
L.P. acquired a 51% interest in Popular’s processing subsidiary,
EVERTEC, and related processing businesses, through the
establishment of a joint venture. The new joint venture is valued
at approximately $868 million. As part of the transaction, Popular
transferred its merchant acquiring and processing and technology
businesses to EVERTEC.
“This transaction concludes our capital plan,” said Popular,
Inc. Chairman & CEO Richard L. Carrión. “We retained 49 percent
in EVERTEC because we strongly believe this partnership has great
potential to expand its business.”
“We are pleased this transaction has closed, and we look forward
to partnering with Popular, the EVERTEC management team, its
employees and customers to continue the expansion and growth of
this strong franchise,” said Apollo senior partner Marc Becker.
The transaction is expected to result in a net gain after taxes
for Popular of approximately $570 million. The net cash proceeds to
be received by Popular after paying for transaction costs and taxes
are estimated at approximately $610 million. The sale has a
positive impact of approximately 2.22 percent on Tier 1 Common,
Tier 1 Capital and Total Capital ratios, and of approximately 1.43
percent on Popular’s Tier 1 Leverage ratio.
In April of this year, Popular raised $1.1 billion in a public
equity offering, which when combined with the gain in this
transaction represents approximately $1.7 billion in new
capital.
Founded in 1893, Popular, Inc. is the leading banking
institution by both assets and deposits in Puerto Rico and ranks
33rd by assets among U.S. banks. In the United States, Popular has
established a community-banking franchise providing a broad range
of financial services and products with branches in New York, New
Jersey, Illinois, Florida and California.
About Apollo
Apollo is a leading global alternative asset manager with
offices in New York, Los Angeles,
London, Frankfurt, Luxembourg, Singapore, Mumbai and Hong
Kong. Apollo had assets under management of over $53 billion as of
December 31, 2009, in private equity, credit-oriented capital
markets and real estate funds invested across a core group of nine
industries where Apollo has considerable knowledge and
resources.
An electronic version of this press release can be found at the
Corporation’s website, www.popular.com.
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