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Hudson City Bancorp, Inc. Message Board

  • jerry9_us jerry9_us Aug 26, 2000 12:10 PM Flag

    JJR1998 OR ANYONE ELSE

    RE SECOND STEP CONVERSION OF HCBK (90% OF
    P/B)

    CAN YOU KINDLY EXPLAIN:

    1. HOW THE PRICE IS
    DETERMINED

    2. HOW THE PRO FORMA BOOK VALUE IS
    DETERMINED.

    THANK YOU,

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    • <EOM>

      • 1 Reply to jerry9_us
      • Jerry9_us:
        To be very conserative, I try to
        figure HCBK MHC selling their 53% of HCBK at about 80%
        of book (including proceeds from MHC shares
        sold).

        HCBK sells their shares @$17.25/sh and raises $1.1B.
        Add 1.1B to current 1.4B equity = $2.5B

        Rather
        than getting into exchange ratio's of current public
        shares, let's divided $2.5 by all current shares (115 M
        shares) = 21.36.

        17.25 / 21.36 = .80 (or 80% ob
        book).

        Now the more money raised in 2nd step conversion, the
        higher the price to book.
        Most full stock conversions
        are currently coming to market at 55-65% of
        book.
        Many seasoned thrifts in NY metro area are selling for
        more than book.

        If shares are sold at $25, that
        would be 100% of book.

        I think the minimum book
        for current shares after the 2nd step is $22.50.

        When/IF HCBK announces 2nd step, I think it goes much
        higher.
        Investors will anticipate a sale of HCBK
        within a few years of 2nd step conversion.

 
HCBK
10.120.00(0.00%)Oct 30 4:00 PMEDT