First Investors Financial Services Group, Inc. (FIFS) announced that its previously announced merger with an affiliate of Aquiline Capital Partners, a New York-based private equity firm investing in the financial services sector, has been completed. The total consideration to be received by the former holders of First Investors securities will be approximately $100 million.
First Investors, which is now a wholly owned subsidiary of a company controlled by Aquiline Capital Partners, has ceased trading of its common stock on the OTC Pink Sheets as of the close of the market on November 1.
Approximately 6.2 million shares, or more than 95.5% of the total shares of the company’s common stock outstanding as of the record date, were voted, more than 99.9% of which were voted in favor of the merger. Approval of the merger required the affirmative vote of at least two-thirds of the shares outstanding as of the October 1, 2012 record date. Under the terms of the approved agreement and plan of merger, the company’s shareholders will receive $13.87 in cash for each share of the company’s common stock they hold.
Former shareholders of First Investors will receive instructions shortly for surrendering their stock certificates to Wells Fargo Bank, which will act as paying agent with respect to the merger. Each shareholder of First Investors is entitled to receive $13.87 per share of common stock of First Investors they hold.
Keefe, Bruyette & Woods and Falconbridge Capital Markets acted as financial advisors to First Investors, with Thompson & Knight acting as legal counsel. Willkie Farr & Gallagher acted as legal counsel and Macquarie Capital acted as financial advisor to Aquiline Capital Partners.
First Investors Financial Services Group is a consumer finance company engaged in originating and holding for investment automobile finance receivables and promissory notes originated by franchised automobile dealers or through refinancing transactions with the vehicle owners.
Aquiline is a private equity firm based in New York investing in financial services enterprises in industries such as property and casualty insurance, banking, securities, asset management and financial technology.
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