Solera National Bank in Lakewood rejects $70M takeover bid

A Single-Branch Bank in Lakewood Receives and Rejects $70 Million Purchase Offer

A single-branch bank in Lakewood recently made headlines after it received and promptly rejected an unexpected offer to purchase it for $70 million. Solera National Bank, located at 319 S. Sheridan Blvd., explained in a news release on Oct. 30 that the board of directors found the unsolicited offer to be grossly inadequate.

The offer, which was sent by Davi Cancado A. Cunha of Eleva Rewards, a Brazilian tech firm, was met with a swift rejection by Solera. Despite the bank’s modest response to the offer, its stock price saw a notable increase.

Solera National Bank, which opened its doors in 2006 with a focus on Hispanic customers, has since shifted its attention to the aviation industry. The bank owns a small fleet of aircraft that it leases to flight schools, resulting in significant tax benefits.

However, Solera has faced scrutiny from local investors Rob and Lola Salazar, who have filed a lawsuit alleging that the bank’s CEO, Michael Quagliano, has mismanaged funds on planes and helicopters for personal use. Quagliano has vehemently denied these claims, stating that the aircraft business is profitable for the bank.

Despite these challenges, Solera has reported strong financial performance, with a net income of $6.5 million in the third quarter, marking a 19% increase from the previous year. The bank’s share price also saw a significant boost following the rejection of Cunha’s offer.

Cunha’s offer, which was intended to remain confidential, proposed the formation of a Delaware LLC, Project Sun Holdings, to acquire Solera National Bank for $70 million. The offer represented a 70% premium over the bank’s stock price at the time.

While Solera executives and board members have refrained from commenting on the offer, the news release announcing the rejection has garnered significant attention in the business community.