(April 20 – 15:45 ET) – Royal Bank of Canada has received regulatory approvals in both Canada and the United States to proceed with its purchase of Prism Financial Corporation. The bank also announced the results of its cash tender offer to purchase all outstanding shares of Prism Financial Corporation.
Approximately 14.4 million shares of Prism Financial Corporation, representing approximately 97.6% of all outstanding shares, were validly tendered and not withdrawn as of 5:00 p.m. on the expiration date of the offer all of which will be accepted. The tender offer expired at 12:00 midnight EST on April 19, 2000. Payment for shares properly tendered and accepted will be made as promptly as practical and, in the case of shares tendered by guaranteed delivery procedures, promptly after delivery of shares and required documentation.
Prism Acquisition Subsidiary Inc., a wholly owned indirect subsidiary of Royal Bank of Canada, will acquire the remaining shares of Prism Financial Corporation in a merger in which each share of common stock will be converted into the right to receive $7.50 in cash, the same consideration paid for shares in the offer, subject to appraisal rights. After that Prism Financial Corporation will become a wholly owned, indirect subsidiary of Royal Bank of Canada.
Following the completion of the acquisition, Prism Financial Corporation will operate as a stand-alone business unit under existing management, and will continue to offer its strong value proposition to clients. Prism’s customers will also benefit from access to Royal Bank’s suite of services in the United States through Atlanta-based Security First Network Bank and Bull & Bear Securities, a discount brokerage operation based in New York.
-IE Staff