Other Conversion News
Two CUs File Papers Seeking Initial Public Offering
WALL STREET-Two more former credit unions have filed papers to sell out to investors through initial public offerings, bringing the total of credit union converts gone public to nine. Both K-Fed Bancorp, Covina, Calif., and Citizens Community Bancorp of Eau Claire, Wis., have filed preliminary prospectuses with the Securities and Exchange Commission for IPOs. K-Fed, which plans to raise as much as $45 million, was known as Kaiser Permanente FCU until November 1999, when it converted to a mutual savings bank. Citizens Community, known as Citizens Community FCU until December 2001, plans to raise up to $10 million. Both credit union converts have reorganized under holding company structures, which will allow them to sell a minority stake in the holding company and still retain control over the banks.
Group At Tasmanian CU Seeking To Demutualize
HOBART, Tasmania-A group of Connect CU members will try again to demutualize Tasmania's largest union. The group narrowly failed to demutualize the (A) $400-million credit union, just barely falling short of the required 75% vote of the members. The latest effort to demutualize the credit union comes as director ballot papers were issued to its 59,000 members this week. "If we want a strong and viable credit union for the future it has to have the financial strength and access to capital to enable it to compete. The vote didn't accurately reflect the views of members, because only 20% voted," said Ross Ginn, one of the leaders of the effort to go public.