Trustmark to buy Cadence Financial in $23.8 million all-stock deal; offers to buy TARP shares
By APWednesday, September 22, 2010
Trustmark buys Cadence for $23.8 million in stock
NEW YORK — Trustmark Corp. on Wednesday said it will buy Cadence Financial Corp. in an all-stock deal worth about $23.8 million.
The deal calls for Cadence shareholders to receive 0.97 shares of Trustmark common stock for each share of Cadence they hold.
The companies said that translates to a value of $2 per share, or a 22 percent premium over Cadence’s closing price in Wednesday’s session of $1.64.
Trustmark has also offered to purchase the $44 million of Cadence preferred stock and the associated warrant — or rights to buy shares — held by the Treasury Department for $30.05 million. Treasury has indicated it is willing to accept a deal, the two banks said.
Chairman and CEO Richard Hickson said the purchase gives Trustmark an entry into several new markets, and will add to the bank’s earnings immediately.
The deal is expected to close no later than the first quarter of 2011, and is subject to regulatory and shareholder approvals.
Trustmark, a regional bank based in Jackson, Miss., has more than 150 branches in Florida, Mississippi, Tennessee and Texas. Starkville, Miss.-based Cadence Financial has 38 branches in Mississippi, Tennessee, Florida and Georgia, with $1 billion in outstanding loans and $1.5 billion in deposits.
Trustmark shares closed Wednesday trading down 57 cents, or 2.7 percent, at $20.45.
