Advanta Announces Preliminary Results of $850 Million Tender Offer.SPRING HOUSE, Pa.--(BUSINESS WIRE)--Feb. 23, 1998--Advanta Corp. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : ADVNB; ADVNA ADVNA Advanta Corporation (stock symbol) ; ADVNZ) Monday announced the successful completion of the company's Tender Offer to repurchase $850 million of common stock and depositary shares, and the preliminary count by First City Transfer Company, the Depositary for the company's Tender Offer. Based on the preliminary count, subject to final verification, approximately all of the outstanding shares of each class of shares sought in the Tender Offer were tendered. Advanta's Chairman, Dennis Alter, said "I am pleased that through the repurchase of such a substantial amount of Advanta shares we will be able to distribute approximately $850 million to Advanta shareholders. "With the closing of the Fleet transaction to acquire Advanta's consumer credit card company and the successful completion of this share repurchase Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. Advanta is well positioned to produce solid, consistent earnings growth and to maximize on the leadership positions of our mortgage and leasing operations." The Tender Offer to purchase approximately 7,882,750 shares of its Class A Common Stock and 12,482,850 shares of its Class B Common Stock, both at $40 per share net, and approximately 1,078,930 shares of its Stock Appreciation Income Linked Securities (SAILS) Depositary Shares at $32.80 per share net, expired at 12 midnight, New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. time on Feb. 20, 1998. As more shares were tendered than the amount sought in the Tender Offer, those shares were purchased pro rata [Latin, Proportionately.] A phrase that describes a division made according to a certain rate, percentage, or share. In a Bankruptcy case, when the debtor is insolvent, creditors generally agree to accept a pro rata share of what is owed to them. . Based on the preliminary count, subject to final verification, the pro ration of shares purchased is expected to be approximately 43% for the Class A Common Stock, approximately 43% for the Class B Common Stock and approximately 43% for the Stock Appreciation Income Linked Securities (SAILS) Depositary Shares. A large number of the shares tendered were through Notices of Guaranteed Delivery. Depending on the number of shares ultimately delivered and the number of odd lots included in those deliveries, the proration Proration A situation during a corporate action in which the available cash or shares are not sufficient to satisfy the offers tendered by shareholders. Therefore, a proportion of both cash and shares is granted for each offer tendered. of shares purchased may change. First City Transfer Company is expected to promptly calculate the final proration percentages upon completion of the final count. Payment will be completed promptly for all shares properly tendered and accepted, subject to proper delivery of shares in accordance with the terms of the Tender Offer. With 2,200 employees, approximately $6.6 billion in managed assets and an additional $9.2 billion in assets serviced for third parties, Advanta is a financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. enterprise that serves consumers and small businesses through innovative offerings of mortgages, leases, corporate credit cards, insurance and deposit products. CONTACT: Advanta Investor Relations Investor relations The process by which the corporation communicates with its investors. , 215/444-5335 or Corporate Communications Corporate communications is the process of facilitating information and knowledge exchanges with internal and key external groups and individuals that have a direct relationship with an enterprise. , 215/444-5073 |
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