Tuesday, Donegal Financial Services Corp.'s president Donald Nikolaus and Mark Gainer, Chairman, President and Chief Executive Officer of Union National Financial Corp. jointly announced the execution of an agreement pursuant to which Union National Financial Corporation (UNNF.OB) and Donegal Financial Services Corporation would merge.
Under the agreement, Province Bank FSB, which Donegal Financial Services Corporation owns, and Union National Community Bank, which Union National Financial Corporation owns, would also merge, the company said. Donegal Mutual Insurance Company and Donegal Group Inc. or DGI (DGICA) own Donegal Financial Services Corporation.
As part of the merger, each share of Union National Financial Corporation common stock, other than shares held by Donegal Mutual and any dissenting shares, would convert into the right to receive $5.05 in cash and 0.2134 of one share of the publicly traded Class A common stock of DGI. DGI Class A common stock pays a cash dividend at the current annual rate of $0.46 per share. Further information about DGI is available in its SEC filings.
For comments and feedback: editorial@rttnews.com