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Eureka Homestead Bancorp, Inc. Reaches Definitive Agreement to Be Acquired by Investor Group
Eureka Homestead Bancorp, Inc. Reaches Definitive Agreement to Be Acquired by Investor Group.
About this update from Eureka Homestead Bancorp Inc.
[{"type":"text","content":"\n\n\n\nEureka Homestead Bancorp, Inc. Reaches Definitive Agreement to Be Acquired by Investor Group\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\nEureka Homestead Bancorp, Inc. Reaches Definitive Agreement to Be Acquired by Investor Group\nPR Newswire\nMETAIRIE, La., Aug. 4, 2023\n\n\n\nMETAIRIE, La., Aug. 4, 2023 /PRNewswire/ -- Eureka Homestead Bancorp, Inc. (\"the \"Company\") (OTC Pink Marketplace: \"ERKH\"), the holding company of Eureka Homestead, a federal savings association headquartered in Metairie, Louisiana, and Eureka Investor Group, Inc. have reached an agreement for the Company and Eureka Homestead to be acquired by Eureka Investor Group, Inc, a newly formed corporation headed by experienced bank investors.\n\n \n \n \n \n \n \n\n \nThe Merger Agreement, which has been unanimously adopted by the boards of the Company and Eureka Investor Group, provides for cash merger consideration equal to $13.0 million. In addition, immediately prior to closing the Company will be permitted, subject to regulatory approval, to pay a dividend equal to an amount by which the Company's adjusted tangible shareholders' equity, as defined in the Merger Agreement, exceeds $10.0 million. However, there can be no assurance that the Company will be permitted to pay a dividend or in what amount. Under the terms of the Merger Agreement, the Company's adjusted tangible shareholders' equity is generally defined as the Company's GAAP equity prior to closing subject to negative adjustments for, among other items, transaction expenses and certain allowance for credit losses adjustments.\nBased on the above and assuming regulatory approval to pay the dividend, Company shareholders are currently estimated to receive between $20.00 and $22.00 in cash consideration for each share of Company common stock (the \"per share consideration\"). The per share consideration ultimately received by shareholders is subject to significant adjustment based on a variety of factors including but not limited to the Company's future operating results, transaction costs, the costs to terminate certain o...