As a result of the Merger, First National plans to open four Carolina National Bank locations in Columbia as First National Bank of the South on February 19, 2008. This change will occur simultaneous with the merger of the wholly-owned bank subsidiaries of First National and Carolina National.
Based on the number of shares of Carolina National common stock outstanding as of the date of the merger, pursuant to the terms of the agreement and plan of merger, National shareholders will receive aggregate consideration of 2.66 million shares of First National common stock and approximately $16.8 million, with fractional shares paid in cash.
The stock portion of the deal represents 70% of the 2.59 million shares of Carolina National common stock that were outstanding as of the close of business on January 31, 2008 times the conversion ratio in the merger agreement of 1.47.
Jerry Calvert, president and CEO of First National, said: We are excited to join forces with Carolina National to create a premier community financial institution in our state. The closing of this merger is the next step in our plans to enhance our market presence in the Columbia area with the ultimate goal of increasing the value of our shareholders’ investment in our company.
