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Only South Carolina's First Community made formal offer for Cornerstone

Easley, S.C.-based Cornerstone Bancorp received unsolicited, informal indications of interest in 2015 and 2016 from several financial institutions interested in exploring a potential deal.

In each case, Cornerstone management met with representatives of the interested parties and explored the possibilities, but ultimately, only the contact by Lexington, S.C.-based First Community Corp. resulted in a formal proposal for a transaction.

On Jan. 26, First Community submitted a nonbinding expression of interest to Cornerstone involving merger consideration of $10.50 per Cornerstone common share, based on a recent 30-day volume weighted average price of First Community common stock of $18.50. The proposed merger consideration was 30% cash and 70% in First Community stock, at an exchange ratio of 0.5676 First Community common share per Cornerstone common share that would be converted into First Community stock.

Around a month after, First Community revised its offer. It involves cash merger consideration of $11.00 per Cornerstone common share that would be converted into cash in the merger and an exchange ratio of 0.54 First Community common share per Cornerstone common share that would be converted into First Community stock.

On April 12, First Community and Cornerstone announced their proposed merger.