New Century Bancorp Announces Merger with Select Bancorp, Select values New Century at $12.55/Share
New Century Bancorp, Inc. ("New Century") (NASDAQ: NCBC), the holding company for New Century Bank, and Select Bancorp, Inc. ("Select"), the holding company for Select Bank & Trust Company, have announced the signing of a strategic merger agreement.
The agreement was approved by the boards of directors of both companies and provides for a partnership between Dunn, North Carolina-based New Century Bank and Greenville, North Carolina-based Select Bank & Trust Company, announced William L. Hedgepeth II, president and CEO of both New Century Bancorp and New Century Bank, and Mark A. Holmes, president and CEO of Select Bancorp and CEO of Select Bank & Trust Company.
The transaction is expected to close mid-2014 subject to the approval of federal and state regulatory agencies and shareholders of both companies.
Under the terms of the agreement, shareholders of Select common stock will receive 1.8264 shares of New Century common stock for each share of Select common stock, for an implied value of approximately $31.1 million in the aggregate, based on 2,475,000 shares of Select common stock outstanding and the $6.87 per share closing price of New Century common stock on September 27, 2013, valuing each share of Select common stock at approximately $12.55 per share.
In addition, each share of Select's issued and outstanding preferred stock will be exchanged for one share of newly issued New Century preferred stock having terms substantially identical to the Select preferred stock. All of the issued and outstanding shares of Select's preferred stock are held by the Secretary of the United States Treasury and were issued in connection with Select's participation in the Small Business Lending Fund.
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