Popular Sells EVERTEC Shares - Analyst Blog

By
A A A

The stock price of Popular, Inc. ( BPOP ) rose 3.4% following the sale of 5.8 million common shares of its payment processing and merchant acquiring subsidiary EVERTEC, Inc. ( EVTC ) 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 ( APO ), 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. ( APAM ), which has a Zacks Rank #1 (Strong Buy).



ARTISAN PTNR AM (APAM): Free Stock Analysis Report

APOLLO GLOBAL-A (APO): Free Stock Analysis Report

POPULAR INC (BPOP): Free Stock Analysis Report

EVERTEC INC (EVTC): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: APAM , APO , BPOP , EVTC , IPO

Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

Stocks

Referenced

Most Active by Volume

33,110,376
  • $113.99 ▲ 1.77%
25,034,179
    $17.98 unch
24,486,872
  • $7.41 ▲ 2.07%
20,864,535
  • $7.39 ▼ 2.76%
18,600,501
  • $8.30 ▼ 0.36%
17,530,211
  • $8.14 ▲ 3.17%
17,299,208
  • $93.79 ▲ 2.74%
14,669,760
  • $25.78 ▼ 0.19%
As of 12/26/2014, 04:15 PM


Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com