10:56 AM EDT, 10/07/2024 (MT Newswires) -- Territorial Bancorp ( TBNK ) said Monday it is urging investors to reject a proposed takeover proposal from Blue Hill Advisors and instead support its proposed merger with Hope Bancorp ( HOPE ) , describing Blue Hill's non-binding express of interest as "illusory."

Territorial shareholders are scheduled to meet on Nov. 6 to vote on Hope Bancorp's ( HOPE ) all-stock buyout bid, which is offering to swap 0.8048 of a Hope share for each of their Territorial shares.

Territorial said the merger proposal provides its shareholders with a 25% premium over its share price just prior to the merger announcement and expects to realize around $10.5 million in synergies and related cost savings after the deal closes.

In contrast, Territorial said Blue Hill had not secured the financing needed to fund its $12.50-per-share cash buyout proposal. Blue Hill's proposed takeover of Territorial with Allan Landon, the former board chairman and chief executive of the Bank of Hawaii ( BOH ) , is dependent on the group first clearing several regulatory hurdles it has not yet started to address, Territorial added.

Shares of Territorial were down 4.9% in recent trading, while Hope Bancorp ( HOPE ) fell 1.2%.

Price: 10.86, Change: -0.56, Percent Change: -4.90