Delanco Bancorp (DLNO) in Delanco, N.J., will convert from a mutual thrift to a fully public company.
The $130 million-asset company said on Friday that it has received regulatory approval for a plan to convert to a stock charter. Delanco is planning a second-step conversion between now and Sept. 30, pending depositor and borrower approval.
Delanco will sell its 55% stake in the company, giving depositors, as of April 30, first priority to buy the stock. The company plans to sell 451,653 to 610,938 shares of common stock at $8 a share.
Shareholders other than the mutual holding company will receive shares of the new holding company under an exchange ratio designed to preserve their ownership stake.
Delanco has two branches in Burlington County, N.J. Keefe, Bruyette & Woods is advising Delanco on the conversion.