Shareholders of Chicago-based PrivateBancorp on Friday approved a sale to Canadian bank CIBC after two price increases boosted the deal to a current value of about $4.8 billion.
The acquisition of the publicly traded bank, which operates as The PrivateBank, represents a 26 percent increase to the price announced in June.
"Today's vote reinforces our stockholders' support for the strategic opportunity a combination with CIBC offers," Larry Richman, PrivateBancorp's president and CEO, said in a news release. "This will make our strong bank even stronger with the same commitment to building long-term client relationships, the same experienced team, and the same dedication to Chicago and all of the communities we serve."
The transaction is expected to close next month, pending approval from U.S. and Canadian banking regulators. Illinois regulators signed off on the deal earlier this month.
Toronto-based CIBC initially offered to buy PrivateBancorp in June in a cash and stock deal valued at $3.8 billion, but improving valuations of U.S. banks in the wake of the November election of President Donald Trump made the deal less attractive to investors. CIBC raised its offer in March by about 20 percent.
In April, proxy advisory firm Institutional Shareholder Services recommended PrivateBancorp shareholders vote down the deal, leading CIBC to boost the cash consideration May 4 by $3 per share.
CIBC President and CEO Victor Dodig said in a news release Monday it was CIBC's "best and final offer," leaving it up to PrivateBancorp stockholders to decide.
Founded in 1867, the Canadian Imperial Bank of Commerce has 11 million personal banking and business clients and $501.4 billion in total assets. It is looking to expand its reach in North America through the PrivateBancorp acquisition.
PrivateBancorp was founded in 1989 and opened its first office two years later in Chicago. The company went public in 1999.
Primarily located in the Midwest, PrivateBancorp has 36 offices in 13 states and $20.4 billion in assets.
