Triad Business Bank Discloses $53.50 Cash Proposal for M&F Bancorp
Triad Business Bank (OTC:TBBC) has publicly presented a revised acquisition offer, known as Proposal Four, to the shareholders of M&F Bancorp. Under the proposed terms, M&F holders can receive $53.50 in cash per share for up to 25% of their holdings or select a stock exchange option of 1.25 shares, while allowing M&F Bancorp to retain its existing charter and company name.
The bid creates a direct challenge to an existing buyout proposal from Optus, which provides up to $46.57 cash at closing and a total value of $53.30 that includes $6.73 paid at a later date. Triad Business Bank aims to win over investors after M&F Bancorp shareholders declined to pass a prior transaction during an October 7 vote. However, M&F Bancorp's board of directors has evaluated the new proposal and indicated that it is unlikely to qualify as a superior offer.
The cash-option proposal remains open through October 20, when M&F Bancorp shareholders are scheduled to vote. Investors will watch whether shareholders choose to reject the Optus deal or pressure M&F Bancorp leadership to open formal negotiations with Triad Business Bank.
Key points
- Triad Business Bank disclosed Proposal Four offering M&F Bancorp shareholders $53.50 per share in cash for up to 25% of shares.
- The proposal includes an option for 1.25 shares and allows M&F Bancorp to keep its charter and brand name.
- M&F Bancorp's board stated that the offer is not likely to be considered superior to the pending Optus deal.
- The competing offer remains open ahead of a scheduled shareholder vote on October 20.
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What are the details of the offer from Triad Business Bank?
Triad Business Bank is offering $53.50 in cash per share for up to 25% of M&F Bancorp shares, or an option for 1.25 shares, with M&F Bancorp preserving its corporate charter and name.
How did M&F Bancorp react to the proposal?
The board of directors at M&F Bancorp stated that the proposal from Triad Business Bank is not likely to be superior to its current agreement.
When will shareholders vote on the deal?
M&F Bancorp shareholders are scheduled to vote on October 20, through which Triad Business Bank's proposal remains open.