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Washington Federal to pay all cash in deal with First Mutual
By Lisa Kerner
Charlotte, N.C., Jan. 28 - First Mutual Bancshares, Inc. stockholders will receive $26.8359 in cash for each share of First Mutual common stock owned in the proposed acquisition of the company by Washington Federal, Inc.
The per-share price is based on the average closing price of Washington Federal's common stock over the 10 trading days ended Jan. 25.
Under the companies' July 2, 2007 merger agreement, if the average closing price of Washington Federal stock is less than $22.75, Washington Federal can elect to pay all cash to First Mutual stockholders.
The average closing price for Washington Federal's common stock during the pricing period was below $22.75, according to a form 8-K filing with the Securities and Exchange Commission.
Washington Federal entered into a definitive merger agreement with First Mutual Bancshares under which First Mutual Bank will merge into Washington Federal's wholly owned subsidiary, Washington Federal Savings, in a transaction valued at $189.8 million.
The agreement called for First Mutual shareholders to elect to receive stock, cash or a combination of stock and cash equal to about $27.05 for each share of First Mutual common stock they own.
The merger is expected to close on Feb. 1.
As previously reported, the combined Washington Federal will have 148 offices in eight states with total assets of $11 billion and total deposits of $6.8 billion.
First Mutual is the bank holding company for First Mutual Bank and is based in Bellevue, Wash.
Seattle-based Washington Federal is the holding company for Washington Federal Savings, a savings and loan company.
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