Canfield, Ohio-based Farmers National Banc Corp. disclosed the values for its 85% stock and 15% cash consideration of its pending deal with Big Prairie, Ohio-based Monitor Bancorp Inc.
Under the deal terms, Monitor shareholders will have the option to receive either 57.82 Farmers common shares or $769.38 in cash for each common share they hold. The aggregate consideration should not be less than 115% and not more than 125% of Monitor's adjusted shareholders equity of $6,030,220 as of March 31. Furthermore, the exchange ratio is subject to adjustment upon deal completion, based on the 20-day volume weighted average closing price of Farmers common shares.
Farmers expects to pay $1,154,070 for 15% of the outstanding Monitor common shares, as per the 85% to 15% split of the deal. As of March 31, Farmers had $2.03 billion in assets.
Monitor also agreed to sell all of its 50% ownership interest in Lifetime Financial Advisors LLC no later than March 31. Monitor executives Joseph Wachtel and Diane Shriver will also continue to work for the combined company for six months but will not be named executives.