US-based financial institutions WesBanco and Premier Financial have secured their respective shareholders’ approvals for the previously announced $959m all-stock merger deal.
At WesBanco’s meeting, around 85% of the votes cast supported the merger and the issuance of the company’s new common stock. Meanwhile, nearly 68% of Premier Financial’s outstanding shares were voted in favour of adopting the merger agreement.
Announced in July this year, the merger is on track for completion during Q1 2025, pending the fulfilment of customary conditions, including required regulatory approvals.
Under the terms of the definitive merger agreement, shareholders of Premier Financial will receive 0.8 shares of WesBanco common stock for each share of Premier Financial common stock.
Once finalised, the merger will create a regional financial powerhouse with approximately $27bn in total assets.
The combined entity will benefit from enhanced economies of scale and strong profitability metrics, positioning it as the eighth-largest bank in Ohio based on deposit market share.
Additionally, the merger will bolster its presence in Indiana and expand operations across nine states.
Upon completing the transaction, WesBanco expects to operate over 250 financial centres and loan production offices across nine US states, significantly enhancing its footprint with the addition of 73 new financial centres.
In line with the merger, WesBanco has also executed subscription agreements with investors to raise capital. This effort is led by a $125m investment from Wellington Management.
Other investors include Glendon Capital Management and Klaros Capital. In total, $200m of WesBanco common stock will be issued.
Following the closing of the deal, Premier Financial shareholders will own around 30% of the newly combined company, while WesBanco shareholders will hold 62%. The remaining 8% represents the shares issued in the capital raise.
