Leading Bank in Harlem Faces Hostile Takeover From One of its Biggest Shareholders Dream Chasers Capital
NEW YORK, Aug. 31, 2023 /PRNewswire/ — On August 14, 2023, Dream Chasers Capital Group, one of Carver Federal Savings Bank’s (NASDAQ: CARV) biggest shareholders of record with a 5.5% stake, has made a significant offer to buy 35% of the bank’s shares for $3 a share, a premium above the current stock price.
Dream Chasers, a New York City based minority-run Investment Fund, made the offer in a letter to Carver’s Board of Directors dated August 14, 2023. Dream Chasers has been in active talks with the bank for months about acquiring a significant interest.
By making this offer, the Investment Fund hopes to take control of the bank and replace the current management and board with an already assembled world-class team of minority executives who have a combined 40 years of experience as CEO or senior executives at some of the largest banks and financial service companies.
Dream Chasers plans to recapitalize the bank and introduce a platform of value-added wealth building services to attract new depositors, thus leading to an increase in shareholder value.
Communities of color lack basic structure, financial services offerings and products to build, maintain and pass on generational wealth. By taking control of Carver and implementing these wealth building services, the fund believes this will uplift and create substantial wealth in communities of color. Dream Chasers have dubbed this wealth building initiative-Project Uplift.
Carver was founded 75 years ago by Black and Caribbean American business owners with a mission to create a bank where minority entrepreneurs could get easy access to capital when other banks would not lend to them. 75 years later, poor execution and mismanagement, have left the bank on shaky financial footing, losing deposits, overconcentrated in commercial real estate and unable to serve any of its constituents’ well-shareholders, depositors, or the community.
By going public with its $3 per share offer to take a controlling interest, Dream Chasers is seeking to rally support for Project Uplift–in whatever form that may come–from civil society builders, like-minded shareholders, activist of all stripes, financial executives, corporations, current Carver bank employees, social media influences, celebrities, professional athletes, entertainers, business titans and all constituents who have a vested interest in seeing communities of color build generational wealth.
For over 75 years Carver’s Board and management has failed to deliver wealth to the communities it serves. The time for change is now, Project Uplift is the way.
Shareholders should be keen to prevent current management/board, from taking any self-serving, dilutive, anti-takeover actions or enact poison pill bylaws -to the detriment of shareholders and the African American community.