The CEO and principal shareholder of a potential acquirer of Destin, Fla.-based First Florida Bancorp Inc. backed out of the deal process in April due to personal and family reasons.
Twelve new potential buyers, including First Bancshares Inc., were then contacted. The Hattiesburg, Miss.-based company and three other suitors expressed interest in exploring a possible transaction with First Florida.
On May 15, First Bancshares submitted an offer to purchase First Florida in a merger for $13.00 per First Florida common share, with 35% of the merger consideration payable in cash and 65% in First Bancshares common shares. The other suitors stated that they were not in a position to make a counteroffer at that time.
First Florida's board on May 17 met to discuss the offer and instructed management to seek a larger percentage of cash. The parties executed a letter of intent three days later, providing for First Bancshares to acquire First Florida by merger, for $13.00 per First Florida common share, in a 40%-cash and 60%-stock deal.
The parties executed and announced the merger agreement July 22.
First Florida would pay First Bancshares a termination fee of about $3.4 million should the deal fall through under certain circumstances.
