BNC To Acquire Valley Financial For $20.50 Per Share

(RTTNews) - Valley Financial Corp. (VYFC), holder of Valley Bank, Monday said BNC Bancorp (BNCN), holder of Bank of North Carolina, agreed to acquire the entire stock of Valley in a transaction valued at $101.3 million, based on the closing price on November 14. The consideration is fixed at $20.50 per each Valley share, payable in BNC shares.

BNC expects to hold about $5 billion in assets post-acquisition, and anticipates contribution to its earnings immediately after the transaction.

The payment in BNC shares will be based on a volume weighted average price or VWAP, within the range of $14.25 to $18.50. Immediately prior to the merger, if VWAP is below the range each Valley share will be converted into 1.4386 BNC shares. In case the VWAP is above the range or at the top end of it, then each Valley share will be converted into 1.1081 BNC shares.