CCB shareholders will receive 0.6250 shares of CTB common stock for each share of CCB common stock owned. In addition, each outstanding option to purchase CCB common stock will become an option to purchase 0.6250 shares of common stock of CCB upon closing of the merger.
The transaction, which has been approved by the directors of both companies, is valued at approximately $5.5 million. The merger is expected to close in the fourth quarter of 2009, subject to shareholder and regulatory approvals and be accretive to earnings in the first full year of combined operations.
As per the terms of the deal, CTB will appoint two CCB directors to its board of directors within ten days of the merger close.
Michael Cline, President and CEO of CTB, said: “This transaction will expand our network into the growing Gastonia and Gaston County market, and we believe our entry into this market, with its proximity to the Charlotte metropolitan region, will result in increased value to our shareholders.”
