By Lisa Kerner
Charlotte, N.C. June 25 - National Penn Bancshares, Inc. agreed to acquire Christiana Bank & Trust Co. for about $37.85 per share in a transaction valued at $56.5 million in stock and cash.
Both companies' boards of directors have unanimously approved the transaction, which calls for Christiana Bank shareholders to exchange their shares for 2.176 shares of National Penn Bancshares common stock or $37.69 in cash. Shareholders may receive cash, stock, or a combination of both.
The transaction is expected to close in the first quarter of 2008, subject to several conditions including shareholder approval.
Following the close of the transaction, Christiana Bank will become a wholly owned subsidiary of National Penn, while retaining its name and Delaware chartered banking corporation status. In addition, Christiana Bank's management team will continue to be led by president and chief executive officer Zissimos A. Frangopoulos.
"This transaction will accomplish three important goals of National Penn's balanced growth strategy," National Penn president and chief executive officer Glenn E. Moyer stated in a company news release.
"First, it adds another business with strong growth characteristics to our franchise. Second, it contributes to our longstanding efforts at diversifying our revenue base. Lastly, the transaction gains us a geographic presence in Delaware, a demographically attractive region immediately adjacent to National Penn's existing coverage areas."
Located in Boyertown, Pa., National Penn is the holding company for National Penn Bank. Christiana Bank, a banking corporation, is based in Greenville, Del.
| Acquirer: | National Penn Bancshares, Inc.
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| Target: | Christiana Bank & Trust Co.
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| Transaction total: | $56.6 million
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| Price per share: | about $37.85 per share in cash, stock, or combination of cash and stock
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| Announcement date: | June 25
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| Expected closing: | First quarter of 2008
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| Stock price for acquirer: | Nasdaq: NPBC: $17.22 on June 22
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| Stock price for target: | OTCBB: CBTD: $26.10 on June 22
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