BNK Financial Group's board has decided against conducting a feasibility review of a merger with JB Financial Group.
BNK Financial Group said in a regulatory filing Tuesday that its board voted against both pursuing a feasibility review of a merger with JB Financial Group and establishing a special committee to carry one out. Eight directors attended the meeting, with five voting against, two in favor and one abstaining.
"We received and reviewed a letter from shareholder Align Partners requesting that we initiate a feasibility review of a merger with JB Financial Group, and reached this decision accordingly," the board said in the filing. "This decision reflects the board's comprehensive judgment, and any specific future developments will be disclosed in accordance with applicable regulations."
Domestic activist fund Align Partners Asset Management had publicly proposed a merger between BNK Financial Group and JB Financial Group on July 14. Tuesday's decision leaves the merger Align Partners proposed without momentum to move forward.
Regarding the outcome, Align Partners said in a statement that it was "deeply disappointed that both boards refused even to independently review the strategic and financial merits of a merger between regional financial holding companies," adding that the filing "presented only a conclusion, without explaining the basis for the judgment or any alternatives considered." The fund said it would request access to the board minutes of both companies to examine the decision-making process before determining its next course of action.
forest@heraldcorp.com
