Overland Park, Kan.-based franchise agency company Brooke Corp. announced that its board of directors’ executive committee has authorized management to explore the possible acquisition of additional shares of Topeka-First American Capital Corp. common stock.
However, any such acquisition of shares may not be initiated until approved by Brooke’s entire board of directors, which has scheduled its next meeting for July 29. CEO Robert D. Orr also noted that certain regulatory approvals must also be secured prior to acquiring additional shares.
Brooke bought about 9 percent of the company’s common stock last November on the hunch that it was underpriced. Since then the company has underperformed and Orr said Brooke now has designs on taking control of the company to “salvage as much business value as possible,” he said in a statement.
“Although it is too early to determine what form these changes might take, possibilities include the sale of First American Capital Corp.’s life insurance subsidiary to a larger life insurance company that has the capital, management and other resources necessary to make it successful,” Orr added.
Brooke has more than 265 gfranchise locations and has originated $135 million in loans, mostly to participating franchises.
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