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Acquisition of United PanAm Financial Corp. Approved by Its Shareholders

^{Published on 2011-02-24 13:15:52 - Market Wire}
 

IRVINE, Calif.--([ BUSINESS WIRE ])--United PanAm Financial Corp. (OTC: UPFC) (aUPFCa) today announced that at a special meeting of shareholders held at 9:00 am PST today, a merger was approved in which UPFC is to be acquired by an entity controlled by Guillermo Bron, Chairman of the Board of Directors of UPFC, and by affiliates of Pine Brook Road Partners, LLC, a private equity firm. Under the terms of the definitive merger agreement, UPFCa™s shareholders will receive $7.05 per share in cash in exchange for their shares of UPFC common stock, indicating a valuation for all outstanding shares of UPFCa™s common stock of approximately $110 million.

UPFC reported that the proposal to approve the merger and adopt the merger agreement was approved by the holders of (1) a majority of the outstanding shares of UPFC common stock entitled to vote at the special meeting and (2) a majority of the outstanding shares of UPFC common stock voted at the special meeting either for or against the proposal to adopt the merger agreement that were not owned by the acquiring entity or its affiliates. UPFC also announced that it expects the merger to be completed as soon as possible.

About United PanAm Financial Corp.

UPFC is a specialty finance company engaged in automobile finance, which includes the purchasing and servicing of automobile installment sales contracts originated by independent and franchised dealers of used automobiles. UPFC conducts its automobile finance business through its wholly-owned subsidiary, United Auto Credit Corporation.

Forward-Looking Statements

This release may contain certain forward-looking statements which involve known and unknown risks, delays, uncertainties and other factors not under UPFCa™s control. The factors that could cause actual results, performance or achievements to differ from the forward-looking statements include the risk that the acquisition of UPFC may not be completed for reasons including that the conditions precedent to the completion of the merger may not be satisfied, the possibility that the expected benefits from the proposed merger will not be realized (or will not be realized within the anticipated time period), the possibility of disruption from the merger making it more difficult to maintain business and operational relationships and any actions taken by either of the companies, including but not limited to, restructuring or strategic initiatives (including capital investments or asset acquisitions or dispositions).

In light of these risks, uncertainties, assumptions and factors, the forward-looking events discussed in this press release may not occur. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date stated, or if no date is stated, as of the date of this press release. UPFC is not under any obligation and does not intend to make publicly available any update or other revisions to any of the forward-looking statements contained in this press release to reflect circumstances existing after the date of this press release or to reflect the occurrence of future events even if experience or future events make it clear that any expected results expressed or implied by those forward-looking statements will not be realized.