ASB to tie up with Prosperity Bancshares
ASB is to merge with Prosperity Bancshares.
American State Bank (ASB) is to merge into Prosperity Bank, following Prosperity Bancshares' use of negotiation techniques with American State Financial Corporation resulting in the signing of a definitive merger agreement between the two firms.
Prosperity is to issue as much as 8,525,000 shares of common stock alongside $178.5 million (£112.67 million) to ASB to purchase all of the company's outstanding shares.
Boards of directors in both companies have approved the transaction and the join-up is expected to conclude over the third quarter of 2012.
However, customary regulatory and shareholder approvals from ASB are required before the deal can take place, so delays are possible.
During 2011, Prosperity Bancshares boosted its full-year net income by 11 per cent.
Chairman and chief executive officer of the organisation David Zalman declared: "We are very excited to be able to become partners with American State Bank. Mr. Collier and his team have built a fantastic bank in West Texas."
Posted by Ron Maverick
Source: Prosperity Bancshares press release, February 27th