Photo by James Sanna | Banker & Tradesman Staff
Boston Private’s shareholders appear to have approved the merger with the parent company of Silicon Valley Bank after the bank delayed the vote for a week to gather more support for the deal.
Preliminary voting results indicated that Boston Private shareholders approved the merger agreement with SVB Financial Group, Boston Private said in a statement this morning following a special meeting of shareholders. The results were based on proxies submitted to the independent inspector for the election, the bank said.
“We are pleased with the outcome of today’s special meeting and thank our shareholders for their support of the financially and strategically compelling transaction with SVB Financial,” Anthony DeChellis, Boston Private CEO and president, said in the statement. “We are excited about our progress toward completing the transaction, and believe that the combined company will be well-positioned to provide an enhanced experience for clients and deliver long-term value for shareholders.”
The transaction is expected to close in mid-2021, Boston Private said, subject to regulatory approvals and customary closing conditions.
The special meeting to vote on the merger had adjourned a week ago to give Boston Private more time to solicit proxies. The bank last week also said it wanted to give shareholders more time to consider the recently released first quarter earnings for both Boston Private and SVB.
The deal had been challenged by one of Boston Private’s shareholders, HoldCo Asset Management, which holds about 4.9 percent of Boston Private’s outstanding shares. HoldCo had argued that the agreement between Boston Private and SVB came after a “non-existent sales process,” contending that Boston Private did not pursue other possible acquisition partners. The asset manager had also called the valuation price unacceptable.
HoldCo had issued a public letter last Wednesday to Greg Becker, SVB’s president and CEO, requesting a change to the transaction pricing. SVB responded to HoldCo on Friday, “reiterating that under no circumstance will it increase the purchase price, including if the deal is not approved by Boston Private’s shareholders.”
The merger agreement calls for Boston Private shareholders to receive 0.0228 shares of SVB Financial common stock and $2.10 in cash for each Boston Private share they own.
