As per the purchase agreement, PlainsCapital Corporation common shareholders includes approximately 27.5 million shares of Hilltop common stock and $318m of cash.
The combination of businesses is expected to close by end of 2012, after obtaining approval from concerned regulatory agencies and approval of the shareholders of Hilltop and PlainsCapital Corporation.
Hilltop chairman Gerald Ford said, "We look forward to working with PlainsCapital and pursuing opportunities to grow the company. We envision a long term and mutually beneficial relationship as we seek to expand the combined company’s footprint."
Upon the completion of the merger, PlainsCapital Corporation chairman and CEO Alan B White will become vice chairman of Hilltop and chairman of the executive committee for hilltop.
White will also continue working as chairman and CEO of PlainsCapital Corporation, while Gerald Ford will remain chairman of Hilltop’s board.
Stephens provided financial advice to Hilltop, while Wachtell, Lipton, Rosen & Katz served as legal advisor.
