Indiana Community Bancorp Surging after Merger
Shares of Indiana Community Bancorp (NASDAQ: INCB) are seeing much strength during Wednesday's trading session after Old National Bancorp (NYSE: ONB) announced a merger with the company.
Under the terms of the merger agreement, which was approved by the boards of both companies, Indiana Community Bancorp shareholders will receive 1.90 shares of Old National Bancorp common stock for each share of Indiana Community Bancorp common stock held by them. Based upon a $12.00 per share Old National Bancorp common stock price the transaction is valued at approximately $79.2 million.
The transaction value will likely change before close due to fluctuations in the price of Old National common stock. As provided in the merger agreement, the exchange ratio is subject to certain adjustments (calculated prior to closing) under circumstances where the consolidated shareholders' equity of Indiana Community Bancorp is below a specified amount, the loan delinquencies of Indiana Community Bancorp exceed a specified amount or the credit mark for certain loans of Indiana Community Bancorp falls outside a specified range.
Currently, shares of Indiana Community Bancorp are trading 44% higher at $21.00.
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