Vermont Business Magazine At a special meeting held today, the shareholders of NUVO Bank & Trust Company of Springfield, MA, overwhelmingly voted to approve the merger agreement between NUVO and Merchants Bancshares, Inc(NASDAQ: MBVT), the parent company of South Burlington, Vermont-basedMerchants Bank, and the related bank merger agreement between NUVO and Merchants Bank pursuant to which Merchants Bank will acquire NUVO for or approximately $21.8 million in stock and cash. The deal was first announced last April..
The shareholders of NUVO approved the merger agreement by the affirmative vote of the holders of 84.5 percent of the outstanding shares of NUVO.Of the shares voted, approximately 97.6 percent of the shares were voted in favor of approval of the transaction.
Consummation of the merger, which is subject to regulatory approval and the satisfaction of the other conditions of the Merger Agreement, is expected to occur on or aboutNovember 30, 2015.
Under the terms of the Merger Agreement, shareholders of NUVO will be entitled to elect to receive either 0.2416 shares of Merchants common stock,$7.15in cash or a combination of Merchants common stock and cash for each share of NUVO common stock outstanding, subject to the allocation and proration provisions contained in the Merger Agreement, which will result in the total consideration being comprised of approximately 75% stock and 25% cash. Election forms will be mailed to NUVO shareholders beginning on September 30, 2015.
Donald R. Chase, Chairman of the Board of Directors of NUVO, stated that "we appreciate the support that our shareholders have shown for the merger by their overwhelming vote in favor of the transaction."
M. Dale Janes, Chief Executive Officer of NUVO, stated that "we are confident our customers will benefit from the merger because of the expanded products and services that will be available to them when NUVO becomes part of Merchants Bank. In working with the people from Merchants Bank in preparing for the closing of the merger, we are finding that they are committed to serving our customers, communities and employees in the best possible way."
About Merchants
Merchants Bancshares, Inc. (NASDAQ: MBVT) is the parent company of Merchants Bank, aVermont-chartered commercial bank established in 1849. Merchants Bank isVermont'slargest and sole remaining statewide independent bank. The bank's consumer, business, municipal and investment customers enjoy personalized relationships, and sophisticated online and mobile banking options at its 32 branches statewide. Merchants Bank and its Merchants Trust Company division employ approximately 292 full-time employees and 33 part-time employees statewide, and have earned several "Best Places to Work inVermont" awards. American Banker ranks Merchants Bank a "Top 200" in America among 851 peers. For more information, go towww.mbvt.com. (Member FDIC, Equal Housing Lender)
About NUVO Bank & Trust Company
Founded in 2008, NUVO Bank & Trust Company is an independent, locally ownedMassachusetts-chartered commercial bank headquartered inSpringfield, Massachusetts. NUVO is focused on providing superior service to small and medium-sized businesses, professionals and individuals inWestern Massachusetts. Money invested at NUVO stays in the region, as the bank makes loans to area businesses and individuals. For more information, go towww.nuvobank.com. (Member FDIC, Equal Housing Lender)
Source:SPRINGFIELD, Mass.,Sept. 30, 2015/PRNewswire/ -- NUVO Bank & Trust Company