By Lisa Kerner
Charlotte, N.C., Sept. 13 - The boards of directors of Integra Bank Corp. and Peoples Community Bancorp, Inc. approved a merger agreement between the two companies in which Peoples will merge into Integra. In addition, Peoples' financial institution subsidiary, Peoples Community Bank, will merge with and into Integra's financial institution subsidiary, Integra Bank NA, with Integra Bank NA being the surviving institution.
Each share of Peoples common stock will be converted into the right to receive 0.6175 of a share of Integra common stock and $6.30 in cash, or about $17.69 per share, in a deal valued at $85.6 million. Integra will pay some $700,000 in cash for Peoples' stock options.
A termination fee of $3.0 million payable by Peoples is included in the agreement, according to a form 8-K filing with the Securities and Exchange Commission.
The transaction is expected to close in the first quarter of 2008, pending Peoples' stockholder approval.
"We are pleased to have the opportunity to accelerate the expansion of our Greater Cincinnati presence and have Peoples Community Bank become part of our team," Integra chairman, president and chief executive officer Mike Vea stated in a company news release.
"This transaction is consistent with Integra's strategy to expand in faster growing, higher income, more densely populated markets, especially those that our management team knows well. We have senior management personnel, including our chief credit officer and commercial real estate manager, currently based in Cincinnati. It was an advantage to have a team in place that was knowledgeable about the market."
The combined company will have about $4.2 billion in total assets, $3.2 billion in deposits and $2.9 billion in loans.
Sandler O'Neill + Partners LP and Baker & Daniels LLP advised Integra. Peoples was advised by Keefe Bruyette and Woods, and Elias, Matz, Tiernan & Herrick LLP.
Integra, the parent of Integra Bank NA, is based in Evansville, Ill.
Peoples, located in West Chester, Ohio, is the holding company for Peoples Community Bank.
| Acquirer: | Integra Bank Corp.
|
| Target: | Peoples Community Bancorp, Inc.
|
| Transaction value: | $85.6 million
|
| Price per share: | 0.6175 of an Integra share and $6.30 in cash, or about $17.69
|
| Announcement date: | Sept. 13
|
| Termination fee: | $3.0 million
|
| Expected closing: | First quarter 2008
|
| Stock price for acquirer: | Nasdaq: IBNK: $18.45 on Sept. 12
|
| Stock price for target: | Nasdaq: PCBI: $16.10 on Sept. 12
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
