Vermont Business Magazine Merchants Bancshares, Inc (NASDAQ: MBVT) today announced that its stockholders have voted to approve the previously announced merger of the Company with Community Bank System, Inc of Syracuse, NY. Consummation of the merger is subject to regulatory approval and the satisfaction of other customary closing conditions. On October 24, 2016, Merchants and Community Bank System announced that they had entered into a definitive merger agreement under which Community Bank System will acquire Merchants in a cash and stock transaction for total consideration valued at approximately $304 million.
Under the terms of the agreement, Merchants' stockholders will have the option to receive, at their election, consideration per share equal to (i) 0.9630 shares of Community Bank System common stock, (ii) $40 in cash or (iii) the combination of 0.6741 shares of Community Bank System common stock and $12 in cash, subject to an overall proration to 70 percent stock and 30 percent cash.
Merchants shares were trading at $32.85 when the deal was announced last October. As of Thursday morning it was trading at $48.
The companies expect the merger to completed by the end of the second quarter of this year. Merchants Bank, based in South Burlington, is a $1.9 billion financial institution, while Community Bank is $8.7 billion.
Vermont Labor Commissioner Lindsay Kurrle told the Burlington Free Press March 13 that 76 Merchants Bank employees will lose their jobs during a two-week period from May 12-25. The Free Press reported that Merchants will retain more than 200 and that Community Bank System will have about 2,800 system-wide following the Merchants merger. In its 2016 survey, Vermont Business Magazine reported Merchants Bank had 295 employees.
The Merchants nameplate will be rebranded to Community Bank.
About Merchants Bancshares, Inc.
Merchants Bancshares, Inc. reported total assets at December 31, 2016 of approximately $2.06 billion. Merchants Bancshares, Inc. is the holding company for Merchants Bank. The bank's business, municipal, consumer, and investment customers enjoy personalized relationships, sophisticated online and mobile banking options, with 31 branches in Vermont and 1 location in Massachusetts, operating as NUVO, a division of Merchants Bank. Merchants Bancshares, Inc. is listed on the NASDAQ Stock Market and trades under the symbol MBVT. For more information about Merchants Bank visit www.mbvt.com.
Source: SOUTH BURLINGTON, Vt., March 23, 2017 /PRNewswire/ -- Merchants. 3.23.2017