By Lisa Kerner
Charlotte, N.C., Feb. 5 - Renasant Corp. signed a definitive agreement to acquire Capital Bancorp, Inc. in a cash and stock transaction valued at about $134.9 million.
The transaction gives Capital common shareholders the choice of 1.2306 shares of Renasant common stock, $38.00 in cash or a combination of 40% cash and 60% common stock for each share of Capital common stock based on values at market close on Feb. 2.
Both companies' boards have unanimously approved the transaction, which is slated to close early in the third quarter of 2007, according to a company news release.
"We believe the combination of Capital and Renasant will create a much stronger competitor in our market and provide us with the resources to enhance our growth plans," Capital chairman and chief executive officer R. Rick Hart said in the release.
"By joining forces with Renasant, we'll be able to offer our clients all the products and services that a much larger financial services institution can provide along with the high degree of service found in a local community bank."
Renasant, based in Tupelo, Miss., is the parent of Renasant Bank and Renasant Insurance.
Capital Bancorp, a Nashville-based bank holding company, is the parent of Capital Bank & Trust Co.
| Acquirer: | Renasant Corp.
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| Target: | Capital Bancorp, Inc.
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| Payment per share: | 1.2306 shares of Renasant or $38.00 cash, or 40% cash and 60% stock
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| Announcement date: | Feb. 5
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| Expected closing: | Third quarter of 2007
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| Stock price for acquirer: | Nasdaq: RNST; $27.92 on Feb. 2
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| Stock price for target: | OTCBB: CPBB; $25.75 on Feb. 2
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