As per the merger agreement, 65% of the outstanding shares of HFB common stock will be converted into the right to receive 0.7019 of a share of NBT common stock for each share of HFB common stock, while remaining shares will be exchanged for $15 in cash per HFB share based on NBT’s closing stock price of $21.37 on 10 November 2011.
NBT also entered into voting and non-competition agreements with the directors and executive officers of HFB and entered into a voting agreement with Meridian Interstate, the holding company of East Boston Savings Bank, which assisted in the formation of HFB and owns nearly 40% of the outstanding stock of HFB.
HFB president and CEO James Dunphy said that HFB was formed five years ago as a community bank in southern New Hampshire and the partnership with NBT will enable them to serve their market that relies on local knowledge and decision making to support their customers and communities.
Valued at approximately $45m, the merger is expected to close early in the second quarter of 2012 subject to regulatory and the HFB’s stockholders approvals.
