East Texas Financial Services, Inc. (“ETFS”) (OTCBB:FFBT) announced that, based on today’s projection, the $20.6 million minimum equity capital requirement under the merger agreement is expected to be met. As a result, the level of capital at ETFS will not cause a reduction in the aggregate consideration for the merger of ETFS into Prosperity Bancshares, Inc. (“Prosperity”) (NYSE:PB).
Assuming the transaction was consummated today and based on the average closing price of Prosperity’s common stock determined pursuant to the merger agreement, ETFS stockholders would receive shares of Prosperity common stock with an aggregate market value of $22,440,060. Based on 1,307,826 shares of ETFS outstanding, the merger consideration would be $17.16 per share of outstanding ETFS common stock payable in common stock of Prosperity, plus cash in lieu of a fractional share.
Derrell W. Chapman, President and CEO of ETFS, stated: “We are very pleased that we will be able to maximize the sale price for our stockholders. This is something we are very proud to have achieved.”
Mr. Chapman went on to urge all ETFS stockholders to vote in favor of the merger agreement on or before the meeting date on March 14, 2012 in order to enable stockholders to be able to exchange their ETFS shares for Prosperity shares. “Without the favorable vote of a majority of our outstanding shares entitled to vote, this transaction cannot be completed,” Mr. Chapman stated.
First Federal Bank Texas, a federal savings bank based in Tyler, Texas and which is a wholly owned subsidiary of ETFS, was founded in 1923. First Federal Bank Texas operates from four office locations in Tyler and Gilmer, Texas.
Derrell W. Chapman, 903-593-1767
President and CEO
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