NEW ORLEANS - Hibernia Corp. on Monday announced its intention to buy First Continental Bancshares in a cash and stock transaction valued at $62.8 million.
The deal is Hibernia's first New Orleans-area acquisition since September 1989 and its second-largest in Louisiana.
The transaction would add $396 million in assets to Hibernia's current $4.6 billion.
Combined with pending mergers in both the Acadiana and northeast regions of the state, Hibernia's total assets would increase by more than $900 million, or almost 20%, to $5.5 billion, and its banking-office network would grow 23% from 101 locations to 124.
2.2 Times Book Value
Shareholders and debtholders of First Continental Bancshares would receive a combination of cash and shares of Hibernia common stock in i tax-free pooling of interests valued at approximately 2.2 times book value of FCB and 16% of assets.
Preferred shareholders of First Continental would receive cash and shares valued at approximately $118 a share.
Common shareholders would receive between 1.41 and 2 shares of Hibernia common, based on its price at closing, valued at $12 a share.
The transaction could be completed in mid-1994.
