CORAL GABLES, Fla.--(BUSINESS WIRE)--Mercantil Bank, N.A. and its U.S. holding company, Mercantil Bank Holding Corporation (the “Company”), announce that the Company will become an independent organization. The shareholders of Mercantil Servicios Financieros (MSF), the Company’s Venezuela-based parent corporation, have approved a spin-off distribution of 80.1% of the Company’s Class A and Class B common stock pro rata to MSF’s shareholders. As part of the transition, MSF is expected to sell, from time to time after the spin-off is completed, the 19.9% of Company Class A and Company Class B common stock it will hold following the delivery of Company shares to MSF shareholders through the spin-off.
This is the next step in a long-term strategic initiative to further expand the Bank’s business in South Florida, Houston, Texas, and the New York City area. The Company and MSF believe the spin-off will allow each of them to compete more effectively, simplify their operations, reduce risks and improve their performance, and therefore add shareholder value.
Mercantil Bank and its subsidiaries, Mercantil Investment Services and Mercantil Trust Company, provide a broad range of banking, trust and wealth management services. The well-capitalized Bank has approximately $8.5 billion in assets and will continue to be dedicated to serving its customers and communities. The spin-off is expected to be completed in the first half of 2018, subject to various actions, including receipt of any necessary actions by the Company’s and the Bank’s regulators, and the effectiveness of a registration statement to be filed by the Company with the U.S. Securities and Exchange Commission (SEC).
The Company will deliver information to MSF shareholders following the SEC declaring the Company’s registration statement effective. The Company plans to list its Class A and Class B stock for trading on a national securities exchange in the U.S. following such effective time.
This press release is not an offer to sell nor the solicitation of an offer to purchase any securities.
