SAN DIEGO & MORRISTOWN, Tenn., Jan.
24, 2014 /PRNewswire/ -- Shareholder rights attorneys
at Robbins Arroyo LLP are investigating the acquisition of
Jefferson Bancshares, Inc. (NASDAQ: JFBI) by HomeTrust Bancshares,
Inc. (NASDAQ: HTBI). On January 23,
2014, the two companies announced the signing of a
definitive merger agreement pursuant to which HomeTrust will
acquire Jefferson Bancshares through a cash-and-stock transaction
under which Jefferson Bancshares shareholders will receive
$4.00 in cash and $4.00 in HomeTrust stock.
(Logo: http://photos.prnewswire.com/prnh/20130103/MM36754LOGO)
Is the Proposed Merger Best for Jefferson Bancshares and
Its Shareholders?
Robbins Arroyo LLP's investigation focuses on whether the board
of directors at Jefferson Bancshares is undertaking a fair process
to obtain maximum value and adequately compensate Jefferson
Bancshares shareholders in the merger.
As an initial matter, the $8.00
consideration represents a one day premium of only 22.5% based on
Jefferson Bancshares' closing price on January 22, 2014. This one day premium is
substantially below the average one day premium of over 54% for
comparable transactions in the last three years. Further, on
October 29, 2013, Jefferson
Bancshares released its earnings for the quarter ended September 30, 2013, which showed substantial
increases in net income and earnings per diluted share. For the
quarter, the company reported net income of $498,000, or $0.08
per diluted share, compared to $295,000, or $0.05
per diluted share, for the same period 2012. Moreover,
Jefferson Bancshares is well-capitalized and has shown continued
improvement in its asset quality.
In announcing these results, Jefferson Bancshares President and
Chief Executive Officer, Anderson L.
Smith, remarked on the positive trajectory of the company
when he stated, "We are encouraged by our results for the quarter
ended September 30, 2013, which
include positive net earnings, increases in capital and continued
improvements in asset quality. We have made significant progress in
reducing our non-performing assets to $15.2
million at September 30, 2013
compared to $19.2 million at
June 30, 2013 and $24.7 million at September
30, 2012. Delinquency levels have declined, with the 30-89
day category totaling $397,000 at
September 30, 2013, compared to
$4.1 million for the same period in
2012."
Given these facts, Robbins Arroyo LLP is examining the Jefferson
Bancshares' board of directors' decision to sell the company to
HomeTrust now rather than allow shareholders to continue to
participate in the company's continued success and future growth
prospects.
Jefferson Bancshares shareholders have the option to file a
class action lawsuit to ensure the board of directors obtains the
best possible price for shareholders and the disclosure of material
information. Jefferson Bancshares shareholders interested in
information about their rights and potential remedies can contact
attorney Darnell R. Donahue at (800)
350-6003, ddonahue@robbinsarroyo.com, or via the shareholder
information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in
securities litigation and shareholder rights law. The law
firm represents individual and institutional investors in
shareholder derivative and securities class action lawsuits, and
has helped its clients realize more than $1
billion of value for themselves and the companies in which
they have invested.
Attorney Advertising. Past results do not guarantee a
similar outcome.
Contact:
Darnell R. Donahue
Robbins Arroyo LLP
ddonahue@robbinsarroyo.com
(619) 525-3990 or Toll Free (800) 350-6003
www.robbinsarroyo.com
SOURCE Robbins Arroyo LLP
