Gary Siegler, Manager Of Indian Creek Investors, The Largest Holder Of Kearny Financial Asks Board To Consider Strategic Alternatives

PR Newswire

AVENTURA, Fla., Dec. 6, 2013 /PRNewswire/ -- Indian Creek Investors LP, a private investment fund and the largest independent shareholder of Kearny Financial Corp. (KRNY), the holding company for Kearny Federal Savings Bank based in Fairfield, NJ, sent a letter to Kearny's Board of Directors encouraging the Board to consider strategic alternatives to remaining an independent, partially-converted thrift. Gary Siegler, the manager of Indian Creek Investors, wrote in the letter to the Board of Directors, "While we applaud the Company's recently announced share repurchase program and CEO Craig Montanaro's efforts to transform the company, we believe that shareholder's interests are best served at this time through a strategic transaction." Citing the recent acquisition of another New Jersey based thrift, Roma Bancorp, Mr. Siegler continued, "As was the case with Roma, we believe Kearny's shares offer tremendous upside potential in a strategic transaction."

A copy of the full letter is included below.

 

December 6, 2013

 

Attn: Board of Directors
Kearny Financial Corp.
120 Passaic Avenue
Fairfield, NJ 07004

 

Ladies and Gentlemen,

Indian Creek Investors, a private investment fund based in Aventura, FL, is the beneficial owner of over 1,200,000 shares of Kearny Financial Corp. ("Kearny" or the "Company").  Based on information available on Bloomberg, we believe Indian Creek is currently the largest independent holder of Kearny Financial shares, holding approximately 8% of the Company's outstanding common stock that is held by persons other than the Company's parent mutual holding company, Kearny MHC. 

While we applaud the Company's recently announced share repurchase program and CEO Craig Montanaro's efforts to transform the company, we believe that shareholder's interests are best served at this time through a strategic transaction.  This view is reinforced by the recently approved purchase of Roma Financial Corp, of which Indian Creek was also a significant holder, by Investors Bancorp. Like Kearny, Roma is a partially-converted New Jersey based thrift.  Prior to the announcement last December that Roma would be sold for stock to Investors Bancorp, Roma shares traded at approximately $8.50 per share. At this same time Kearny shares traded at approximately $10.50 per share. Today Roma shares have risen approximately 150% to over $21 per share in anticipation of the merger's imminent closing. Kearny's shares meanwhile remain under $10.50 per share. As was the case with Roma, we believe Kearny's shares offer tremendous upside potential in a strategic transaction. Given what we perceive to be the extraordinary gap between Kearny's current trading value and its value in a strategic combination, we respectfully ask the Board to formally consider strategic alternatives to remaining an independent, partially-converted thrift.  We are available to discuss our views with you in further detail at your convenience.  We look forward to speaking with you.

Very truly yours,

 

/s/ Gary Siegler
ManagingMember of IC Holdings LLC, as
Managing Member of Indian Creek Asset Management LLC, as
General Partnerof Indian Creek Investors LP

 

 

Contact:
Sabrina Balgobin
(786) 363-8281

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