MFB Corp. to be acquired by MutualFirst Financial
Shares of MFB Corp. (Nasdaq: MFBC) are soaring today after the regional bank said it is being acquired by MutualFirst Financial, Inc. (Nasdaq: MFSF) for $52.7 million.
The combined companies will form a financial institution with a market cap capitalization in excess of $100 million with virtually $1.5 billion in assets. With aggregate deposits now more than $1 billion, the combined institution's market share will rank among the top 20 financial institutions conducting business in the state of Indiana.
Shareholders of MFB will receive 2.59 shares of MutualFirst stock, or $41 in cash, or a combination of both, such that 80% of the aggregate purchase price is paid in stock and the remaining 20% in cash.
The transaction is expected to be completed late in the second quarter of 2008.
Shares of MFB (MFBC) rocketed 34.16%, or $8.97, to $335.23 during morning trading. Shares of MFB have been trading in the range of $24.40 to $35.26 for the past 52 weeks.
