CU-Convert Maps Ways To Public StockSale
FORTH WORTH, Texas - (04/29/05) -- OmniAmerican CU, one of two Texascredit union giants in the process of converting to mutual savingsbanks, said it plans to sell a minority of shares in a newly formedmutual holding company to the public soon after its conversion inorder to raise new capital. The new funds, an undetermined amount,would be used by the newly formed bank holding company to fundadditional branches, products and services, the $1.3 billion creditunion said in disclosures obtained by The Credit Union Journal. Thecredit union told members it estimates the conversion process willcost $906,000, with the major expenses being legal fees andexpenses (200,000); consulting expenses ($170,000); a membershipawareness campaign ($123,000); postage for mail disclosures andballots ($117,000); and mailing ($115,000). The disclosures alsospells out how credit union members, all of whom have one vote,will see diminished voting rights with those with larger depositbalances having more voting power, and thus, greater control. Thedisclosures were sent this week to OmniAmerican's 215,000 members,who are expected to vote on the conversion this summer.