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Central Bankcompany and Liberty Bancorp to create a leading lender with USD 2.3bn in assets
Posted on Thursday, 11 April 2019 11:56
Central Bankcompany has reached an agreement to acquire Liberty Bancorp, in a deal that values the group at USD 103.70 million.

Under the terms of the transaction, BankLiberty will be merged into the acqurior’s Central Bank of the Midwest, which is headquartered in Missouri.

The buyer is offering the target’s shareholders USD 42.00 in cash for every item of stock held, in addition they will also receive cash equal to the difference between the offer price and the exercise value of their in-the-money options.

Closing is expected in the third quarter of 2019 and remains subject to regulatory and security holder approvals and the receipt from all requires state and federal officials.

Following completion, the new Central Bank of the Midwest will have combined assets totalling USD 2.30 billion, with USD 1.70 billion in loans and USD 1.90 billion in deposits.

In addition, it will have an additional 13 branches in the Northland and Independence areas bringing its total to 46.

Bill Ferguson, chief executive of the acquiror, said: “This opportunity allows us to expand our footprint north of the river in Kansas City, an area we have wanted to be in for some time.

“We are excited to join BankLiberty in making this partnership a reality in the Northland. Their commitment to financial strength and local decision-making is a perfect fit for our Central Bank family.”

Zephyr, the M&A database published by Bureau van Dijk, shows there have been 58 mergers and acquisitions involving one bank buying all, or a stake, in another lender announced worldwide in 2019 to date.

The largest of these was announced in January as Abu Dhabi Commercial Bank agreed to acquire Union National Bank of the United Arab Emirates for AED 14.64 billion (USD 3.99 billion).

Chemical Financial is picking up US-based TCF Financial for USD 3.50 billion in the second-biggest of these deals.

Other targets include Indonesia’s Bank Tabungan Pensiunan Nasional, Russia’s Bank VTB and Germany’s Norddeutsche Landesbank Girozentrale.

© Zephus Ltd