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The activist investor had vowed to wage a proxy battle next year against Malvern Bancorp unless it addressed concerns about shareholder value
October 16 -
Malvern Bancorp (MLVF) in suburban Philadelphia announced Wednesday the resignation of president and chief executive Ronald Anderson.
January 15
Malvern Bancorp (MLVF) in Paoli, Pa., is facing activist pressure to sell itself.
PL Capital, which owns about 9.7% of Malvern's stock, urged the board of the $585 million-asset company to find a buyer. "We do not think Malvern has evidenced the ability to adequately address its challenges individually," the group
The group noted that there are regulatory restraints to a sale. Notable, Malvern is prohibited from selling for a three-year period following its conversion from a mutual to a stock-owned company. That period will not end until October 2015.
PL Capital suggested that management go ahead engage legal and financial advisers to explore a sale that could close after the three-year period ends. "We do not know if the regulators will permit such a request, but we believe it is appropriate for the board and the company to pursue this option," the letter added.
Malvern
Malvern lost $426,000 in the first quarter after losing $845,000 a year earlier. Ronald Anderson
PL Capital isn't the only group that believes a sale is best for Malvern. A group of Keefe, Bruyette & Woods analysts led by Travis Lan wrote in a Monday note to clients that a sale might be the best outcome.
"Exclusive of attracting a strong, accomplished CEO, a sale is the best bet," the research team said. "At the end of the day, Malvern remain directionless without a strong CEO at the helm."