PBIP - Fulton Financial and Prudential Bancorp announce merger to strengthen Philadelphia presence

Fulton Financial (NASDAQ:FULT) and Prudential Bancorp (NASDAQ:PBIP) entered into a definitive Agreement and Plan of Merger wherein the latter will merge with and into Fulton in a stock and cash transaction. Under merger terms, Prudential shareholders will receive Fulton common stock based on a fixed exchange ratio of 0.7974 Fulton shares and $3.65 in cash for each Prudential share they own. While Fulton Financial reports consolidated assets of ~$26B, Prudential boasts of assets worth ~$1.1B. Transaction implied value based on average stock price for period ended Mar.1 is ~$142.1M or $18.01/share; ~80% of the transaction consideration to Prudential common shareholders will consist of Fulton common stock, while remaining payable in cash. The transaction is expected to qualify as a tax-free exchange with respect to the stock consideration received by Prudential shareholders. The merger is expected to close in Q3.

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Fulton Financial and Prudential Bancorp announce merger to strengthen Philadelphia presence