Chemung Financial Corp. in Elmira, N.Y., has cleared one of the final hurdles in its bid to buy Fort Orange Financial Corp. in Albany, N.Y.
Shareholders of the $1 billion-asset Chemung and the $260 million-asset Fort Orange have approved the $29.3 million sale, which was announced in October. In a March 25 filing with the Securities and Exchange Commission, Chemung said 70.5% of its outstanding shares voted in favor of the merger. The approval was announced March 24.
Fort Orange shareholders may receive either $7.50 in cash or 0.36 share of Chemung common stock for each share of Fort Orange stock. The deal is expected to close on April 8.
The exchange ratio could be lowered if Chemung stock rises above $25.20 before March 31. The price may also be lowered if Fort Orange's asset quality has deteriorated. The aggregate consideration will be paid as 75% Chemung common stock and 25% cash, according to the companies.