BankUnited Will Buy Herald National Bank

Florida lender BankUnited, which is owned by private equity investors including Blackstone Group, Carlyle Group and Centerbridge Partners, said Thursday that it would buy Herald National Bank for about $72 million in cash and stock to move into the New York market, Reuters reported. BankUnited will pay about $22.9 million in cash and issue about 1.7 million shares to purchase Herald National, Reuters wrote.

(Reuters) – BankUnited Inc., the cleaned-up Florida lender which went public in January, said it would buy Herald National Bank for about $72 million in cash and stock to move into the New York market.

Private equity backed BankUnited will pay about $22.9 million in cash and issue about 1.7 million shares to purchase Herald National.

Herald National shareholders can choose to receive either cash or shares, having a value of $1.35 plus the value of 0.0990 shares of BankUnited common stock, the company said.

BankUnited said the transaction values each Herald National common and preferred stock at $4.13 — the stock’s Wednesday close. However, Herald National shares have fallen 20 percent since touching a year high of $5.20 on Tuesday on NYSE Amex.

Shares of the Miami Lake, Florida-based BankUnited closed at $28.11 on Wednesday on the New York Stock Exchange. (Reporting by Jochelle Mendonca in Bangalore; Editing by Roshni Menon)