Site icon Market Globalist

Severn Bancorp (SVBI) Stock Is Rising 27% Pre-Market, Thanks To Merger Deal

Severn Bancorp, Inc. (NASDAQ: SVBI) stock is trending upward minutes before start of the regular session today. The stock has been floating at $10.69 as of 09:25 a.m. EST, after rising +27.57% from the closing price of the last session. The rise has been coming on the heel of a merger deal news.

What does the merger deal say?

3 Tiny Stocks Primed to Explode The world's greatest investor — Warren Buffett — has a simple formula for making big money in the markets. He buys up valuable assets when they are very cheap. For stock market investors that means buying up cheap small cap stocks like these with huge upside potential.

We've set up an alert service to help smart investors take full advantage of the small cap stocks primed for big returns.

Click here for full details and to join for free


Severn announced today it has reached a definitive merger agreement with Shore Bancshares, Inc. (SHBI). Under the agreement, Severn and Shore will merge through a stock and cash transaction valued at approximately $146 million, or $11.30 per share of stock of Severn, and $1.59 per share in cash.

A closing price for Shore’s common stock of $15.64 as of March 2, 2021 was used to determine the price. Based on anticipated cost savings of approximately 35%, Shore expects the transaction to produce over 30% EPS growth in 2022. All members of the Board of Directors of both companies have approved the agreement.

The definitive agreement provides that holders of Severn common stock will be eligible for 0.6207 shares of Shore common stock and $1.59 in cash for each share of Severn common stock they hold. The value of the valuation will float with the Shore’s stock price, since the exchange ratio will be fixed at 0.6207. For the consideration, the cash portion will be fixed at $1.59 a share.

Over 59.6% of the shares outstanding of the combined company will belong to existing Shore shareholders. Ownership is expected to be around 40.4% for Severn shareholders. The deal is expected to close in the third quarter of 2021, subject to regulatory approvals and shareholder approval from Shore and Severn shareholders.

Get The Best Stocks To Trade Every Day!

Join now to get the pre-market morning brief 100% free

Exit mobile version