LOS ANGELES, AUG. 24 -- A group whose investors include former Treasury secretary William Simon today said it has agreed to acquire Western Federal Savings & Loan Association for $151.8 million.
The acquisition by D.P. Holdings Inc., unanimously recommended by the thrift's directors, is subject to approval by regulators and Western Federal's shareholders.
D.P. Holdings, whose investors also include former Federal Reserve Board chairman Preston Martin, would pay $41 per share for the Western Federal's 3.6 million outstanding shares.
That is a 73 percent premium over the stock's closing price of $23.62 1/2 on Friday, the last day of trading before the deal was announced.
The stock rose $13.62 1/2 to $37.25 in national over the counter trading today.
In addition, D.P. Holdings would pay $23.50 per share for management-held options to buy an additional 178,691 shares.
If the deal is completed, Western Federal, based in Marina del Rey, would become the third thrift to be acquired by the fledgling group in the past year.
The first was marginally profitable Honolulu Federal Savings, followed by troubled Beverly Hills-based Southern California Savings, which had been declared insolvent by regulators two years earlier.
By contrast, Western Federal, with $2.12 billion in assets and 23 offices in the Los Angeles metropolitan region, is "profitable and healthy," said Martin, reached by telephone in San Francisco.
For its fiscal year ended June 30, Western Federal earned about $15 million.