NEW YORK, Dec. 2, 2015 /PRNewswire/ -- The proposed acquisition of HF Financial Corporation ("HFFC" or the "Company") by Great Western Bancorp Inc. ("GWB") is being investigated by WeissLaw LLP for possible breaches of fiduciary duty and other violations of law by the Board of Directors of HFFC. On November 30, 2015, the Company announced it had reached a definitive agreement for GWB to acquire all outstanding shares of HFFC in a transaction valued at approximately $137 million. Under the terms of the agreement, HFFC shareholders will receive either 0.65 shares of Great Western or $19.50 in cash for each HFFC share they own.
WeissLaw is investigating whether HFFC's Board acted to maximize shareholder value prior to entering into the agreement. Notably, the merger price represents a premium of no more than 22% based on HFFC's average closing price over the last month, which is significantly below the average of nearly 42% for similar transactions within the past five years. Additionally, HFFC reported strong earnings results for its first quarter 2016 with net interest income increasing 16% and earnings increasing 113%.
Given these facts, WeissLaw is investigating whether HFFC's Board acted in the best interests of HFFC's public shareholders by actively shopping the Company to maximize shareholder value prior to entering into the agreement with GWB. If you own HFFC shares and would like more information about your rights or our investigation, or if you have information to share with us, please contact Joshua Rubin by telephone at (888) 593-4771 or by email at firstname.lastname@example.org.
WeissLaw LLP has litigated hundreds of stockholder class and derivative actions for violations of corporate and fiduciary duties. We have recovered over a billion dollars for defrauded clients and obtained important corporate governance relief in many of these cases. If you have information or would like legal advice concerning possible corporate wrongdoing (including insider trading, waste of corporate assets, accounting fraud, or materially misleading information), consumer fraud (including false advertising, defective products, or other deceptive business practices), or anti-trust violations, please email us at email@example.com or fill out the form on our website, http://www.weisslawllp.com/contact/report_fraud/.
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SOURCE WeissLaw LLP