Biggest investor in Fla.’s Seacoast plans to slash stake

The biggest investor in Seacoast Banking Corp. of Florida will significantly reduce its stake in the company less than a year after pushing for its sale.

CapGen Capital Group III is planning to sell up to 6.2 million Seacoast shares in an offering that could raise more than $120 million for the private equity fund run, which is by former Comptroller Eugene Ludwig. The sale could also lower the firm’s stake to roughly 3.3%.

CapGen currently owns nearly 20% of the $4.7 billion-asset company’s stock.

CapGen, once a vocal critic of Seacoast’s management, railed against the company’s performance in a May letter to the bank’s board. The group pushed the board to either improve results or consider finding a buyer.

CapGen first bought into Seacoast in 2009, paying no more than $2.50 a share for its initial investment. The current offering, expected to close on Feb. 21, priced Seacoast shares at $22.25 each.

Seacoast will also sell some of its own stock, disclosing in a press release Wednesday that net proceeds should exceed $49 million. The company plans to use the proceeds for general corporate purposes, including potential acquisitions and organic growth.