Middlesex Savings To Acquire Strata Bank
Medway-based Strata Bank has agreed to be acquired by Middlesex Savings Bank of Natick.
Under the agreement, public shareholders of stock in Strata's parent company Service Bancorp Inc. will get $28 per share. Also, Service Bancorp will cease to be a mutual holding company and Strata will be merged and "re-mutualized" into Middlesex Savings, the banks said in a statement.
The deal is expected to close in the spring of 2009. The acquisition has been approved by Middlesex's board of trustees, the boards of directors of Service Bancorp Inc. and Strata Bank and the board of trustees of Service Bancorp MHC, the Massachusetts mutual holding company that owns the majority of Service Bancorp Inc.
The transaction must still be approved by banking regulators, which must also approve the formation of a mutual holding company to be formed by Middlesex Savings. Stockholders of Service Bancorp Inc. and the corporators of Service Bancorp MHC are also yet to approve the deal.
The troubled Strata Bank lost about $8 million through its securities investments in Fannie Mae, Freddie Mac, Lehman Brothers and AIG. The stock savings bank's former CEO Pamela Montpelier stepped down in September for personal reasons and was replaced by veteran banking executive Edward Hjerpe III.
WBJ Web Partners
Most Recent
Most Recent
0 Comments