United Bancshares has signed a stock purchase agreement with Ohio State Bancshares (OSB) to purchase all of issued and outstanding shares of its banking subsidiary The Ohio State Bank.
Upon completion of the transaction, the acquired entity will be merged with The Union Bank Company, an Ohio banking corporation and wholly owned subsidiary of United, while The Union Bank Company will emerge as the surviving entity.
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Under the terms of the purchase agreement, United will acquire Ohio State Bank for consideration that includes the assumption of OSB’s $3m Trust Preferred Stock plus unpaid accrued interest thereon.
The deal also includes repayment of nearly $550,000 of senior debt as well as a cash payment equal to nearly 50% of Ohio State Bank’s tangible capital at closing, after certain adjustments.
Subject to receipt of all necessary bank regulatory approvals, the transaction is likely to conclude during the fourth quarter of 2014.
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By GlobalData
