Boardwalk Bancorp sets 52-week high on buyout news
Shares of Boardwalk Bancorp Inc. (Nasdaq: BORD) have set a new 52-week high following news the Linwood, N.J.-based company is being purchased by Cape Savings Bank for about $101 million in a cash and stock transaction.
Boardwalk Bancorp, the holding company for Boardwalk Bank, and Cape Savings Bank, which also operates in the Garden State, announced after Thursday’s close that they have entered into a definitive merger agreement that has been approved by both boards. Half of the merger consideration will be in Boardwalk’s common stock and the other half will be in cash.
“This transaction not only combines two well-respected community banking organizations creating a combined franchise with over $1 billion in total assets but also provides our depositors the ability to benefit as shareholders in the combined organization,” said Herbert Hornsby Jr., President and CEO.
“Boardwalk is an attractive acquisition target because of its substantial footing in the commercial lending market in Southern New Jersey,” said analyst Bret Ginesky with Stifel, Nicolaus & Co. “The merger creates a bigger platform to develop the market.”
The deal is expected to close in the first quarter of 2008, pending approval from regulators and Boardwalk’s shareholders. Cape Savings Bank is preparing a simultaneous public offering as soon as that happens.
At 1:59 p.m. ET the stock had added $3.40, or 19%, to $21.50. The previous 52-week high of $18.24 was achieved on Jan. 12. The 52-week low of $15.38 was set on Aug. 09, 2006.
