The stock price of
) rose 3.4% following the sale of 5.8 million common shares of
its payment processing and merchant acquiring subsidiary
) on Dec 13. The transaction was a part of EVERTEC's public
offering of 15,233,273 shares at $20.60 per share.
Popular received total cash proceeds of nearly $118 million
(excluding underwriting discounts) from this deal. This one-time
gain will be reflected as a tax gain of approximately $99 million
in the company's fourth-quarter 2013 earnings results.
Apollo Global Management, LLC
), Popular and some of the officers and employees of EVERTEC
vended their stake in the aforementioned public offering. EVERTEC
itself repurchased nearly 3.7 million of its common shares sold
by the stockholders from the underwriters.
Apollo vended nearly 9.2 million shares in the offering.
Though it has not been officially declared, as per a report in
Bloomberg, Apollo was expected to book a huge profit of 400% or
around $730 million from this move. This stake sale will
expectedly fetch Apollo around $917 million in cumulative
proceeds, a return that will be five times its $184 million
investment in EVERTEC.
Further, Apollo garnered around $260 million and $301 million
from EVERTEC's initial public offering (IPO) in April and the
following stock offering in September, respectively. The company
was also paid dividend amounting to $162 million.
Popular, EVERTEC and Apollo all have a Zacks Rank #3 (Hold). A
financial stock worth a considering is
Artisan Partners Asset Management Inc.
), which has a Zacks Rank #1 (Strong Buy).
ARTISAN PTNR AM (APAM): Free Stock Analysis
APOLLO GLOBAL-A (APO): Free Stock Analysis
POPULAR INC (BPOP): Free Stock Analysis
EVERTEC INC (EVTC): Free Stock Analysis
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