Provident New York Bancorp has announced its purchase of Sterling Bancorp through a stock deal amounting to US$344 million. The deal would expand the presence of Provident in the New York city region according to the companies.
Shareholders of Sterling Bancorp would receive 1.2625 shares in Provident for each of Sterling's shares. The deal would value Sterling shares at US$11.12 based on trading close last Wednesday. The amount has a 11.2% premium over the reported value.
Sterling has long been the target of takeover bids because it is one of the leading franchises for small business lending. With the deal, Provident shareholders would be owning 53% of the combined company while Sterling shareholders would retain ownership of the rest.
Bank of America Merrill Lynch together with Credit Suisse Securities LLC served as advisors to Provident while Wachtell, Lipton, Rosen & Katz acted as legal advisors to the deal. For its part, JP Morgan Securities advised Sterling while Keefe Bruyette & Woods, Sullivan & Cromwell LLP was the legal advisor.
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