Magna Group Agrees to Buy Homeland for $216 Million
May 16, 2011
WATERLOO, Iowa -- The broad consolidation taking place in the banking industry continued on Tuesday as Magna Group agreed to acquire Homeland Bankshares Corp. for about $216 million in shares and cash. Under the terms of the agreement, Magna will issue about 5 million common shares and $92 million in cash for all outstanding Homeland common shares. Each common share of Homeland may be exchanged for about 1.55 Magna shares or a comparable amount in cash. In trading Tuesday on the Nasdaq Stock Market, Homeland's shares rose $1.75 to $35.75, while shares of Magna slipped 6.25 cents to $24.813. Magna, a St. Louis bank holding company with $5.35 billion in assets, said the acquisition will be accretive to earnings within 12 months. Magna said it will result in savings of $8 million through centralization of systems and procedures and consolidation of various bank charters. The acquisition is scheduled to be completed in the first quarter of fiscal 2012 and is subject to regulatory and Homeland shareholder approval. Homeland Bankshares, based in Waterloo, Iowa, owns four commercial banks and one savings bank and had $1.2 billion in assets at March 12, 2011
