Comprehensive M&A data with integrated detailed company information

First Bancshares snaps up Sunshine Financial
Posted on Thursday, 07 December 2017 11:14
First Bancshares is buying Sunshine Financial, the holding company of Florida-based Sunshine Community Bank for USD 32.10 million.

The offer of USD 27.00 per share represents a premium of 3.6 per cent over the target’s closing price of USD 22.20 on 5th December 2017, the last trading day prior to the announcement.

However, shareholders could instead choose to receive 0.93 of a share of First Bancshare’s common stock in lieu of cash.

Both options are subject to proration and reallocation procedures; in the end, only 25.0 per cent of stakeholders will receive the cash and the remaining 75.0 per cent will get the stock offering.

Completion of the board-approved takeover is anticipated in the second quarter of 2018, subject to approvals from both shareholders and the relevant regulatory bodies.

The internal rate of return is expected to exceed internal thresholds and 2019 earnings are predicted to increase as a result of the deal.

Listed on OTCPink, Sunshine has five branches in Tallahassee, Florida and, at 30th September 2017, had USD 194.00 million in assets, USD 161.00 million in loans and USD 142.00 million in deposits.

Although this deal marks First Bancshare’s entry into the Tallahassee market, it began plans for a tri-state expansion eight years ago, increasing its Gulf South operations from just nine branches in 2009 to 48 locations, as of 31st March 2017.

Zephyr, the M&A database published by Bureau van Dijk, shows that the Hattiesburg, Mississippi-headquartered holding company has announced four acquisitions in the Florida pandhandle and the surrounding area in the last two years alone.

The most valuable such transaction, worth USD 60.00 million, involves Southwest Bancshares and is expected to close by June 2018; once it and the Sunshine purchase close, the Nasdaq-listed buyer will have 63 locations in Mississippi, Louisiana, Alabama, and Florida.

First Bancshares will also, on a pro forma basis, have assets, deposits and loans estimated at USD 2.40 billion, USD 2.00 billion and USD 1.60 billion, respectively.

© Zephus Ltd