This evening we received notice that First Cloverleaf (FCLF) was being acquired by:
This transaction will be performed as either (my choice):
- A stock transaction exchanging .495 shares of FMBH for each FCLF share, or
- $12.87 cash for each FCLF share
The deal is subject to proration, with FMBH wanting to pay 25% in cash. This translates into roughly a 24.4% gain in less than two years. My guess is I’ll take the shares to roll the capital gains into the future, but I’ll base the decision on the spread between the two a few months down the road.
The good news, besides the premium, is FMBH pays a slightly higher dividend. The downside is the dividend is semi-annual rather than quarterly.