Apollo Global Management LLC, the private-equity firm led by Leon Black, is exiting its investment in payment processor Evertec Inc. with a profit of about $730 million, or 400 percent.
Apollo, Popular Inc. and Evertec employees will sell stock in a 15.2 million-share offering, Evertec said in a statement today. Apollo stands to get about $194 million for its remaining 9.2 million shares, based on Evertec’s closing price yesterday of $21.11 a share.
Black’s firm acquired a 51 percent interest in San Juan, Puerto Rico-based Evertec from Popular, Puerto Rico’s largest bank, in September 2010. With the latest transaction, New York-based Apollo will have received about $917 million in cumulative proceeds, or five times its $184 million equity investment.
The firm collected about $260 million in Evertec’s initial public offering in April, and an additional $301 million from a follow-on stock sale in September, regulatory filings show. Apollo also received about $162 million in dividends.
Charles Zehren, a spokesman for Apollo at Rubenstein Associates Inc., declined to comment on the firm’s profits.
Evertec will repurchase about $75 million of stock from the underwriters in the offering, which it will fund with about $25 million in cash on hand and $50 million of borrowings, the company said in today’s statement.
Goldman Sachs Group Inc. and JPMorgan Chase & Co. are the sale’s lead underwriters.