Britton & Koontz Capital (BKBK) Pops On Merger Announcement

Jacob Harper  |

Deep South regional bank Britton & Koontz Capital Corp. (BKBK) saw its shares shoot up in early trading Tuesday after reports surfaced that indicated the bank chain would be bought out by Lafayette, La.-based holding company Home Bancorp. (HBCP) . The merger was unanimously approved by both boards, and is expected to close in the first quarter of 2014.

The deal, worth a reported $34.5 million, includes all eight of Britton $ Koontz’ branches, five of which are located in Mississippi and three of which are in Baton Rouge, La.

Shareholders of Britton & Koontz will receive $16.14 a share for their stock.

With the acquisition, Home Bancorp, whose main holding is The Home Bank, will increase in size to $1.2 billion in assets, $483 million in loans, and $224 million in deposits. The bank will now consist of 31 branches spread throughout Louisiana and Mississippi, with a particularly heavy presence in the historically Francophone Acadiana region of Louisiana.

Home Bancorp rose slightly on the acquisition, edging up 2.05 percent to hit $18.44 a share.

Britton & Koontz traded on almost 70 times normal volume on the news the company was not long for this world. Shares shot up 9.17 percent to hit $15.83 a share.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer.


Discover: Trending Events

United Nations
Blockchain for Europe
Humanity 2.0
World Economic Forum

Watchlist

Symbol Last Price Change % Change
AAPL

     
AMZN

     
HD

     
JPM

     
IBM

     
BA

     
WMT

     
DIS

     
GOOG

     
XOM

     
BRK.A

     
FB

     
JNJ

     
WFC

     
T

     
NFLX

     
TSLA

     
V

     
UNH

     
PG