After agreeing to sell to Trustmark Corp., Cadence Bank has changed its mind.
A Mississippi-based bank with offices in Sarasota has changed its plans to sell its business after a new suitor upped a two-week old offer by roughly $6 million.
Late last month, Cadence Bank agreed to sell to Trustmark Corp., a Jackson, Miss.-based company, for $23.8 million. Now, that deal will not be completed, as Cadence has accepted a $30 million purchase offer from Houston-based Community Bancorp LLC instead.
According to the Trustmark sale agreement, Cadence Financial Corp. stockholders were to receive 0.1 shares of Trustmark stock for each Cadence share owned, valuing those shares at $2 each. Instead, the new agreement with Community Bancorp will send Cadence stockholders $2.50 in cash for every share owned.
Community Bancorp will also help Cadence cover a larger portion of monies owed to the federal government through the Troubled Asset Relief Program ($38 million of $44 million owed) than had been promised by Trustmark ($30 million).
Despite the late change, all is not lost for Trustmark. The company will receive a $2 million termination fee from Cadence per its previous agreement.
Cadence Bank manages $1.9 billion in assets through its 38 branch locations, three of which were located in the Sarasota area.