WATERBURY — Wall Street investment house Warburg Pincus is selling nearly half its stake in super-regional lender Webster Bank, with the bank planning to buy about a quarter of the Warburg stake.
The bank and its parent, Webster valium generic Corp., announced December 7 that ten million Webster shares in Warburg's portfolio were buy tramadol online no prescription be offered publicly at $20.10 apiece, or about there million, before commissions and fees.
Following the sale, which was due to close in mid-December, Warburg will still own about 13.6 percent of Webster's common stock, down from the current 22.5 percent, according to bank officials.
In addition, Webster announced that its board of directors had authorized a $100 million common stock repurchase program under which shares may be repurchased from time to time in open market or privately negotiated transactions, subject to market conditions and other factors.
In connection with the common stock repurchase program, Webster will purchase approximately 2.5 million shares of its common stock in the offering at a price per share equal to the price per share being paid by the underwriter to Warburg Pincus in the offering.
In July 2009 Warburg invested $115 million in the bank a year after Webster received a $400 million federal bailout in the wake of the autumn 2008 near-collapse of the global financial system.
To accommodate Warburg, Webster shareholders first had to amend the bank holding company's incorporation certificate to allow ownership of more than 10 percent of Webster's outstanding shares without the approval of holders of two-thirds of the outstanding common stock.
Also, shareholders agreed to the issuance of Webster common shares and the conversion of preferred shares and warrants to buy as many as 11.3 million shares as called for as part of the Warburg Pincus deal.
Webster Chairman and CEO James Smith said he understands Warburg's business decision to harvest fruit from its investment.
"Warburg's investment in Webster has been extraordinarily successful,'' Smith said in a statement, "so it's natural that they would lighten up and return some capital to their partners three and a half years into the relationship.''
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