Old National Bancorp To Buy Tower Financial In $107.7 Mln Cash-stock Deal

(RTTNews) - Evansville-based Old National Bancorp (ONB) announced that it will acquire Fort Wayne-based Tower Financial Corp.(TOFC) through a stock and cash merger.

As per the terms of the merger agreement, shareholders of Tower Financial Corporation will receive 1.20 shares of Old National Bancorp common stock and $6.75 in cash (fixed) for each share of Tower Financial common stock.

Based upon the September 5, 2013, closing price of $13.52 per share of Old National common stock, the transaction is valued at about $107.7 million. The company said the transaction value is likely to change due to fluctuations in the price of Old National common stock. The exchange ratio is subject to adjustment in the event shareholders' equity of Tower Financial Corporation is below a specified amount.

The merger agreement was unanimously approved by the boards of both companies.

The transaction is expected to close in the first quarter of 2014. The transaction remains subject to approval by federal and state regulatory authorities and Tower Financial Corporation shareholders as well as the satisfaction of other closing conditions provided in the merger agreement.

The merger agreement also provides that Tower Bank, the bank subsidiary of Tower Financial Corporation, will be merged into Old National Bank, the bank subsidiary of Old National Bancorp.