Yadkin Valley Financial loses more than a quarter of its value on news of planned acquisitionShares of Yadkin Valley Financial Corp. (Nasdaq:YAVY) lost more than a quarter of their value this morning after the company announced plans to acquire American Community Bancshares Inc. (Nasdaq:ACBA) for about $92 million. Elkin, N.C.-based Yadkin Valley said before the opening this morning that it has agreed to acquire Charlotte, N.C.-based American Community Bancshares and its subsidiary American Community Bank. The total transaction value represents 168% of American Community's book value and 23 times American Community's trailing 12 months’ net income. The deal is expected to close no later than the beginning of the 2009 first quarter. Yadkin Valley says the buy will allow it to enter the state of South Carolina for the first time. Once the transaction is complete, Yadkin Valley says it will be a $2 billion institution with more than forty offices in sixteen North and South Carolina counties. By mid-day, Yadkin Valley is at $12.52, down $4.47 from Tuesday’s close. The stock has traded as low as $9.85 and as high as $17.90 during the past year. For detailed price information and news stories on Yadkin Valley, click YAVY.
American Community Bancshares to be acquired by Yadkin Valley FinancialShares of American Community Bancshares, Inc., (Nasdaq:ACBA) are soaring ahead of the bell after the small cap bank said this morning that it will be acquired by Yadkin Valley Financial Corporation (Nasdaq:YAVY) for a premium of $92 million. The total transaction value represents 168% of American Community's book value, 207% of tangible book value, 17.4% of total assets, a 19.5% core deposit premium, and 23 times American Community's trailing twelve months net income. Shares leaped 65%, or $4.55, to $11.55 ahead of the bell. For detailed price information and news stories on American Community, click ACBA. spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer spacer
|
Research
|
