North Asia Investment Corp (NAIC) and Pacific City Financial have terminated their previously announced merger agreement.
NAIC and Pacific City Financial have determined to terminate the merger agreement due to the fact that holders of a significant percentage of NAIC’s public shares indicated an intention to vote against the merger and seek conversion of their shares, and as a result it did not appear that NAIC would have received the necessary vote to approve the merger.
Thomas Chan-Soo Kang, CEO of NAIC, said: “Pacific City is an exceptional company with a strong track record. We wish them continued success as they grow their business.”
JC Chang, president and CEO of Pacific City Financial, said: “We regret that we will not have the opportunity to complete this transaction with NAIC. Despite our disappointment, there were positives for Pacific City during the first quarter of 2010, including an increase in equity capital of $2.87m and the subsidiary bank returning to profitability.”
NAIC is a special purpose acquisition company incorporated in the Cayman Islands. NAIC was formed to acquire, or acquire control of, one or more operating businesses through a merger, stock exchange, stock purchase, asset acquisition, reorganization or other similar business combination.
California-based Pacific City is a bank holding company that conducts its operations through Pacific City Bank, a California state-chartered bank. Pacific City provides a full range of consumer and business banking services, including accepting deposits into checking and various types of interest-bearing deposit accounts while also originating a full range of commercial, industrial, real estate, Small Business Administration and consumer loans.