Central Valley Community Bancorp (CVCY) and Visalia Community Bank (VSMU.OB) announced that a definitive merger agreement has been signed by both parties.
As per the terms of the agreement, Visalia Community Bank, with four branches in Visalia and one branch in Exeter, will merge with Central Valley Community Bancorp's subsidiary, Central Valley Community Bank.
The transaction is subject to customary closing conditions, including regulatory approvals and approval by Visalia Community Bank's shareholders.
The Central Valley Community Bancorp and Visalia Community Bank boards of directors have unanimously approved the transaction, which is expected to close in the second quarter of 2013.
The transaction is initially valued at approximately $22.1 million or $52.00 per share to Visalia Community Bank shareholders. The purchase price is to be paid half in cash and half in Central Valley Community Bancorp common stock. Based on a value of $8.75 per share of Central Valley Community Bancorp common stock, using the 30-day volume weighted average trading price at the time when the principal terms of the agreement were being established, in the aggregate approximately 1.263 million shares of Central Valley Community Bancorp common stock would be issued and $11.05 million would be paid in cash.
As a result, Visalia Community Bank shareholders would be entitled to receive approximately $26.00 and 2.97 shares of Central Valley Community Bancorp common stock per share. The total purchase price is subject to adjustments and closing conditions, including potential adjustments if the volume weighted average trading price of Central Valley Community Bancorp common shares rises or falls beyond certain levels prior to closing.
The Central Valley Community Bancorp and Central Valley Community Bank directors and management team, led by Daniel Doyle, president and CEO, will continue to lead the combined team of professional bankers. F. T. "Tommy" Elliott IV, chairman of the board of directors of Visalia Community Bank, will join Central Valley Community Bancorp's board of directors upon completion of the acquisition.
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