* Deal offers 8 percent premium
* Nara Bancorp CEO to lead combined co
(Adds details, share movement)
Dec 9 (Reuters) - Nara Bancorp Inc agreed to buy Center Financial Corp in an all-stock deal valued at $285.7 million, making it the largest Korean-American banking franchise in the United States.
The Asian American banking sector has been seen as a hot bed for consolidation with banks like Nara and Wilshire Bancorp Inc looking like potential acquirers following their recent capital raises.
The Korean American banking space has drawn attention, with South Korea's Woori Finance Holdings signing an agreement to buy a controlling stake in Hanmi Financial Corp earlier this year.
After Nara buys Center Financial, it will be the only Korean-American bank with more than 40 branches in Southern California, Northern California, New York, New Jersey, Seattle and Chicago, the companies said.
Nara's $7.16 per share proposal represents an 8 percent premium to Center Financial's Thursday's close of $6.65.
As part of the deal, each Center Financial shareholders will receive a fixed ratio of 0.7804 of a share of Nara Bancorp common stock in exchange for each share held.
Los Angeles-based Nara's Chief Executive Alvin Kang will lead the combined company while Center Financial CEO Jae Whan Yoo will be its president, the companies said.
The combined company -- 55 percent owned by Nara shareholders and the rest by Center Financial shareholders -- will operate under a new name that will be determined after the closing of the deal, which is expected in the second half of 2011.
The deal will result in a $10.7 million one-time expenses. Cost savings from the deal are expected to be about $11.2 million -- 50 percent of which will come in the fourth quarter, the companies said in a statement.
Nara Bancorp was advised by Keefe Bruyette & Woods Inc. Center Financial was advised by D.A. Davidson & Co.
Shares of Center Financial were trading up 4 percent at $6.90 after the bell. Those of Nara were flat at $8.67.
(Reporting by Sweta Singh in Bangalore; Editing by Don Sebastian) Keywords: CENTERFINANCIAL/NARABANCORP (sweta.singh@thomsonreuters.com ; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: sweta.singh.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
* Nara Bancorp CEO to lead combined co
(Adds details, share movement)
Dec 9 (Reuters) - Nara Bancorp Inc agreed to buy Center Financial Corp in an all-stock deal valued at $285.7 million, making it the largest Korean-American banking franchise in the United States.
The Asian American banking sector has been seen as a hot bed for consolidation with banks like Nara and Wilshire Bancorp Inc looking like potential acquirers following their recent capital raises.
The Korean American banking space has drawn attention, with South Korea's Woori Finance Holdings signing an agreement to buy a controlling stake in Hanmi Financial Corp earlier this year.
After Nara buys Center Financial, it will be the only Korean-American bank with more than 40 branches in Southern California, Northern California, New York, New Jersey, Seattle and Chicago, the companies said.
Nara's $7.16 per share proposal represents an 8 percent premium to Center Financial's Thursday's close of $6.65.
As part of the deal, each Center Financial shareholders will receive a fixed ratio of 0.7804 of a share of Nara Bancorp common stock in exchange for each share held.
Los Angeles-based Nara's Chief Executive Alvin Kang will lead the combined company while Center Financial CEO Jae Whan Yoo will be its president, the companies said.
The combined company -- 55 percent owned by Nara shareholders and the rest by Center Financial shareholders -- will operate under a new name that will be determined after the closing of the deal, which is expected in the second half of 2011.
The deal will result in a $10.7 million one-time expenses. Cost savings from the deal are expected to be about $11.2 million -- 50 percent of which will come in the fourth quarter, the companies said in a statement.
Nara Bancorp was advised by Keefe Bruyette & Woods Inc. Center Financial was advised by D.A. Davidson & Co.
Shares of Center Financial were trading up 4 percent at $6.90 after the bell. Those of Nara were flat at $8.67.
(Reporting by Sweta Singh in Bangalore; Editing by Don Sebastian) Keywords: CENTERFINANCIAL/NARABANCORP (sweta.singh@thomsonreuters.com ; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: sweta.singh.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.