This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Customers Bancorp Inc. And Religare Announces A Business Collaboration

WYOMISSING, Pa., June 26, 2013 /PRNewswire/ -- Customers Bancorp Inc. (NASDAQ: CUBI) the holding company for Customers Bank, today announced it has formed a business collaboration with and will invest $51 million in the high growth financial institution Religare Enterprises Limited ("Religare"), which is one of India's leading diversified financial services companies and is applying for a banking license in India.

Mr. Jay Sidhu, Chairman and Chief Executive Officer of Customers Bancorp Inc., commented: "We are very excited about working with a high quality company like Religare Enterprises. We think there are mutually beneficial opportunities for both organizations to explore. Going forward, our management team's extensive banking experience will be available to Religare in its banking foray. We agreed to invest after doing research on investment opportunities in the financial services industry in India with the help of Dinodia Capital Advisors, and have negotiated what we believe are very attractive terms and covenants in connection with this investment. We feel comfortable with the growth prospects of Religare and its subsidiaries and affiliates, and look forward to a long term relationship with them."

Customers has agreed to invest $51 million, spread amongst the purchase of shares, both directly from Religare and separately from a promoter of the company, and the purchase of warrants.

James D. Hogan, Customer Bancorp's Chief Financial Officer, added, "We expect this collaboration and investment to provide well in excess of our current ROE on the capital being deployed and to enhance our long term earnings. Religare plans to be an important player in India, the third largest economy in the world and one of the least exploited banking markets in the world. Working with Religare, we also plan to set up a small group at Customers Bank catering to professionals from South East Asia and businesses who want to take advantage of opportunities in South East Asia. This is a rapidly growing niche in our markets from Boston to Washington."

Mr. Sidhu added, "We are joining IFC, the private equity arm of The World Bank, in this very opportunistic investment and we hope to see positive effects on our earnings within the next few quarters. We are always looking for opportunities to add value to our franchise, better serve our customers and to create value for our shareholders. In the last few weeks we have completed extensive due diligence and have obtained unanimous board approval to move forward on the collaboration and investment process.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

DOW 17,730.11 -27.80 -0.16%
S&P 500 2,076.78 -0.64 -0.03%
NASDAQ 5,009.2140 -3.9090 -0.08%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs