A key investor in Webster Financial (WBS) is reducing its stake in the Waterbury, Conn., company.
Webster said Thursday that Warburg Pincus will sell 10 million shares of the $1.9 billion-asset company's common stock in a secondary offering. Warburg, which invested $115 million in Webster in July 2009, will reduce its stake in the company to roughly 13.6% from 23.6%.
Warburg bought the stock at $10 a share. Webster shares closed Thursday at $20.89 a share.
"Warburg's investment … has been extraordinarily successful, so it's natural that they would lighten up and return some capital to their partners," James Smith, Warburg's chief executive, said in an emailed statement. "Warburg continues to hold a majority of their position in Webster, consistent with our shared view that Webster continues to make good progress in its quest to be the leading regional bank in its markets."
Warburg did not respond immediately to a request for comment.
David Coulter, a managing director at Warburg who joined Webster as vice chairman when the investment was made, will remain on the company's board.
Webster also said Thursday that it would purchase 2.5 million of the shares that Warburg is selling as part of a $100 million buyback program.