CFG - Why Shares of Investors Bancorp Rose Today
Shares of New Jersey-based Investors Bancorp (NASDAQ: ISBC) rose by 10.5% Wednesday after the roughly $27 billion asset bank announced that it's being acquired by the much larger Citizens Financial Group (NYSE: CFG) , a roughly $185 billion asset bank based in Rhode Island.
Citizens will pay $14.63 per share to buy Investors -- 90% in stock and 10% in cash. Seeing as Investors closed Tuesday trading at $13.02 per share, that price represents a 12.4% premium. It also values Investors at roughly 130% of its tangible book value (TBV) -- i.e., the value of its physical assets, or what the bank would be worth if it were to be immediately liquidated.
"The acquisition of Investors, following on the heels of the acquisition of HSBC's East Coast branches, further strengthens our formidable franchise in the northeast, together adding roughly one million customers and boosting our near and long-term growth potential," Bruce Van Saun, chairman and CEO of Citizens, said in a statement.
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Why Shares of Investors Bancorp Rose Today