Cadence Financial Corp., the parent of Cadence Bank, says the Federal Reserve has approved its buyout by a private Houston, Texas-based investment firm.
The company said in a statement that Federal Reserve approval came Tuesday. The company says it expects the purchase to close on March 1.
Cadence”s board of directors agreed to the buyout with Community Bancorp LLC of Houston, Texas, in October, and the buyout was approved in December in a shareholder vote.
Holders of 61 percent of Cadence”s stock voted. Of those voting shareholders, 89 percent were in favor of the acquisition, according to a statement released by Cadence.
Under the agreement, shareholders will receive $2.50 in cash per Cadence common share.
Community Bancorp, a company formed to invest in community banks, will continue to operate under the Cadence name and said that it planned to keep the bank”s executive team, including Cadence CEO Lewis Mallory Jr.
Early last fall, Cadence agreed to be bought by Jackson-based Trustmark Bank, but backed out of the deal and agreed to pursue the opportunity with Community Bancorp.
Cadence since settled a class action suit, brought by Cadence shareholder RSD Capital, which alleged Mallory, other executives and members of Cadence”s board of directors concealed details in a proxy statement to public shareholders in order to complete “a transaction which protects and advances the interests of Cadence”s management team who are using this opportunity to benefit themselves.”
Mallory, at the December shareholders” meeting, said the deal didn”t “provide any payout” to him or other executives.
Cadence has branches in Mississippi, Tennessee, Alabama, Florida and Georgia.
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