Carolina National Corp. to be bought out by First National Bancshares, Inc.

First National Bancshares, Inc. (Nasdaq: FNSC) reported this morning that it will purchase Carolina National Corp. (Nasdaq: CNCP) for $59.3 million.

Under the terms of the deal, Carolina National’s shareholders may choose to receive either 1.4678 shares of First National common stock or $21.65 in cash for each share of Carolina National common stock. The banks also said in a joint statement that Carolina National shareholders may opt to receive a combination of stock and cash as long as the breakdown is 70% stock and 30% cash. 

First National’s offer represents a premium of 59.2% over Carolina National’s closing price of $13.60 on Friday.

The acquisition will create the ninth-largest financial institution headquartered in South Carolina and the ninth largest deposit franchise of community banks operating in South Carolina, according to information reported to the FDIC as of June 30, 2006.

According to the companies, the combined company will also be the sixth-largest publicly-traded financial institution headquartered in South Carolina with pro forma market capitalization of approximately $90 million based on the pro forma shares outstanding and the closing stock price of First National as of August 24.

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