To compensate for a 35% decrease in its stock price, State Financial Services of Hales Corners, Wis., has agreed to reprice its deal to buy Home Bancorp of Elgin, Ill.
Under the new terms, State Financial said it would swap an additional 358,495 shares for all outstanding shares of Home. Based on State Financial's closing share price of $16.375 Tuesday, the 6.1 million-share deal is worth $99.4 million.
When the deal was announced in June, State Financial agreed to pay $133.7 million of stock for the $386 million-asset thrift company. Home had the right to renegotiate if State Financial's stock price stayed below $20 between Nov. 6 and Dec. 5. Its highest price during that period was $19.50 a share, on Nov. 19.
The deal is expected to close next Tuesday. The combined company would have $804 million of assets and 16 branches in northern Illinois and southeastern Wisconsin.