Stonegate Bank (NASDAQ:SGBK) Investor Investigation Over Possible Breaches Of Fiduciary Duties In Takeover Announces

If you purchased shares of Stonegate Bank (NASDAQ:SGBK) and currently hold any of those NASDAQ:SGBK shares, you have certain options and you should contact the Shareholders Foundation, Inc.

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Company Name(s): 
Stonegate Bank
Affected Securities: 

April 10, 2017 (Shareholders Foundation) - An investigation on behalf of investors, who currently hold shares of Stonegate Bank (NASDAQ:SGBK), was announced concerning whether the takeover of Stonegate Bank by Home BancShares, Inc is unfair to NASDAQ:SGBK stockholders.

The investigation by a law firm concerns whether certain officers and directors of Stonegate Bank breached their fiduciary duties owed to NASDAQ:SGBK investors in connection with the proposed acquisition.

On March 27, 2017, Stonegate Bank (NASDAQ:SGBK) entered into an Agreement and Plan of Merger with Home BancShares, Inc. and its wholly-owned bank subsidiary, Centennial Bank, under which Home BancShares, Inc and Centennial Bank, will acquire Stonegate Bank (NASDAQ:SGBK).

Under the terms of the Agreement, shareholders of Stonegate Bank (NASDAQ:SGBK) will receive, in the aggregate, proceeds from the transaction of approximately $749.8 million, consisting of $50.0 million in cash and $699.8 million of Home BancShares, Inc common stock. In addition, the holders of outstanding stock options of Stonegate Bank (NASDAQ:SGBK) will receive approximately $28.6 million in cash in connection with the cancellation of their options immediately before the Merger, for a total transaction value of approximately $778.4 million.

However, given that at least one analyst has set the high target price for NASDAQ:SGBK shares at $53.75 per share, the investigation concerns whether the offer is unfair to Stonegate Bank (NASDAQ:SGBK stockholders. More specifically, the investigation concerns whether the Stonegate Bank (NASDAQ:SGBK Board of Directors undertook an adequate sales process, adequately shopped the company before entering into the transaction, maximized shareholder value by negotiating the best price, and acted in the shareholders' best interests in connection with the proposed sale.

Stonegate Bank reported that its Net Income rose from $9.32 million in 2013 to $28.93 million in 2016.

Shares of Stonegate Bank (NASDAQ:SGBK) grew from $28.53 per share in February 2016 to as high as $48.52 per share in March 2017.