By NEMS Daily Journal
STARKVILLE – The Federal Reserve on Tuesday approved the merger of Cadence Financial Corp. and Community Bancorp.
Cadence Financial, the parent company of Cadence Bank, said it expects the transaction to close March 1.
Under terms of the acquisition agreement, Cadence shareholders will receive $2.50 in cash per Cadence common share.
Houston, Texas-based Community Bancorp, or CBC, also offered $36 million for $44 million in Cadence preferred stock owned by the U.S. Treasury and issued for the bank bailout program, or TARP.
Cadence will keep its name, charter and personnel intact after the deal, according to a news release. It will become a wholly owned subsidiary of CBC.
The deal was announced last fall, two weeks after Cadence announced it had reached a definitive agreement to be acquired by Jackson-based Trustmark for a $2-per-share stock swap.
Cadence later terminated the Trustmark agreement, opting for the bigger cash offer from CBC.
Cadence will pay a $2 million termination fee for breaking the Trustmark deal.
Cadence said all Cadence stock holders will get a letter and instructions after the deal closes about how they can surrender stock certificates for the cash payment per share.
Cadence expects that shareholders holding Cadence stock in brokerage accounts will automatically be credited with the proceeds by their broker following the closing date.