Cheviot Financial stock will convert to new stock in $50.6 million bid

Stifel, Nicolaus is agent; offering, conversion to settle in January

By Devika Patel

Knoxville, Tenn., Nov. 15 - Cheviot Financial Corp. said New Cheviot will price a stock offering in connection with Cheviot Mutual Holding Co.'s planned mutual-to-stock conversion.

New Cheviot will sell Cheviot Mutual Holding Co.'s 61.5% ownership interest in Cheviot Financial for between $37.4 million and $50.6 million to depositors of Cheviot Savings Bank and depositors of the former the Franklin Savings and Loan Co.

The sale is expected to consist of between 4,675,000 and 6,325,000 common shares, which will be sold at $8.00 per share, which is a 5.77% discount to the Nov. 14 closing share price of $8.49. New Cheviot may increase the offering by 15% to $58.2 million, or 7,273,750 shares.

At settlement, all Cheviot Financial shares will be exchanged for between 0.8570 and 1.1594 New Cheviot shares, resulting in stockholders owning about the same percentage of New Cheviot as they owned in Cheviot Financial. New Cheviot will be entirely publicly owned and Cheviot Financial and Cheviot Mutual Holding Co. will both cease to exist.

Stifel, Nicolaus & Co., Inc. will conduct the offering on a best-efforts basis.

The conversion and offering are conditional upon New Cheviot selling at least 4,675,000 shares.

Settlement is expected in January.

Cheviot Financial is a Cincinnati-based mid-tier stock holding company for Cheviot Savings Bank. Its shares trade on the Nasdaq under the symbol "CHEV."

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.