TransCommunity Financial Corp. in Glen Allen, Va., said Monday that three shareholder groups that had previously objected to its agreement to sell itself to a "blank check" company in Alexandria have given the deal their blessing.
The $235 million-asset TransCommunity announced in early September that it would sell itself to Community Bankers Acquisition Corp. for $48.5 million in stock. Community Bankers was formed in 2006 for the purpose of acquiring banks, and the TransCommunity purchase would be its first.
However, three investment groups, whose members own more than 28% of TransCommunity's shares, said in Securities and Exchange Commission filings last fall that they planned to vote against the deal, arguing that TransCommunity could have gotten a higher price from a banking company. Their objections likely put the deal in jeopardy.
On Monday, TransCommunity said that it has received letters from Financial Stocks Capital Partners IV LP, Northaven Management Inc., and Paragon Associates LP, indicating that they intend to vote their shares in favor of the deal with Community Bankers.
The TransCommunity acquisition is not the only deal Community Bankers has in the works. In December it announced that it would buy the $294 million-asset BOE Financial Services of Virginia Inc. in Tappahannock for about $52 million in stock. BOE would be merged with TransCommunity. Both deals are expected to close next quarter.
