New Century
Bancorp, Inc. ("New Century") 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.
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in