US-based bank holding company Park National Corporation has signed an agreement to acquire a 91.45% stake in NewDominion Bank for $76.4m.
As per terms of the agreement, for each share of NewDominion Bank its shareholders can choose to receive either 0.01023 shares of Park common stock or $1.08 in cash.
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After completion of the deal, NewDominion will become a community bank division of Park’s subsidiary The Park National Bank.
Even after the completion of the deal, NewDominion will retain its name, local leadership and board.
The latest deal follows Park’s friendly investment of $3.5m in NewDominion in November 2016 that gave its 8.55% ownership of NewDominion’s outstanding common stock.
NewDominion CEO J Blaine Jackson said: “This is an exciting time for our company and clients. I’m so proud of the commitment and effort our teammates have made to transform our bank and look forward to seeing the even greater impact we’ll be able to make in our community and with our clients across the region. Having the strength of Park National Bank behind us is going to take us all, our clients included, to the next level.”
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By GlobalDataAs of 31 December 2017, NewDominion has $338m in assets, $282m in deposits and $284m in loans and manages two bank branches in downtown Charlotte and Mooresville
Subject to regulatory approvals and other customary closing conditions, the acquisition is slated to be concluded in mid 2018.
