On Friday, WesBanco, Inc. (WSBC) confirmed the signing of a merger agreement with Premier Financial Corp. (PFC) in an all-stock transaction. This merger is anticipated to be classified as a tax-free reorganization.
According to the agreement's terms, Premier shareholders will receive 0.80 shares of WesBanco common stock for each share of Premier common stock they currently hold. The total value of the merger stands at approximately $959 million, or $26.66 per share, based on WesBanco's closing share price of $33.32 on July 24, 2024.
WesBanco has also secured capital commitments through subscription agreements with various investors, including an investment of $125 million from Wellington Management and additional investors. In total, $200 million worth of WesBanco common stock will be issued, with the capital raise expected to finalize by August 1, 2024.
Upon completion of the merger, shares allocated to Premier shareholders are projected to constitute 30 percent of the combined entity's outstanding shares, while shares from the capital raise will represent 8 percent. The remaining 62 percent of the combined entity’s outstanding shares will be retained by WesBanco shareholders.
The transaction will expand WesBanco’s presence by incorporating 73 financial centers primarily in northern Ohio, with additional locations in southern Michigan and northeastern Indiana.
