(Reuters) – Wainwright Bank & Trust Co (WAIN.O) agreed to sell itself to privately held Eastern Bank Corp for about $163 million in cash, the companies said.
The proposal values the deal at $19 for each Wainwright Bank share and offers a 98 percent premium to the stock’s Monday close of $9.61.
Shares of Wainwright rose as 97 percent to a new 12-month high of $18.90 in morning trade Tuesday on the New York Stock Exchange.
Wainwright will remain as a separate unit of Boston-based Eastern Bank for a transition period before the merger is completed, the companies said.
The deal is expected to close in the fourth quarter.
Upon closing, Jan Miller, chief executive of Wainwright, will become president of Eastern Bank, the companies said.
At March 31, Eastern Bank’s consolidated assets were about $6.6 billion and Wainwright had assets of about $1.0 billion.
RBC Capital Markets acted as financial advisor to Eastern Bank Corp and Sandler O’Neill Partners LP acted as financial advisor to Wainwright. (Reporting by Sweta Singh in Bangalore; Editing by Prem Udayabhanu and Gopakumar Warrier)