Generations Bancorp NY, Inc. GBNY shares are trading higher premarket Tuesday. The company agreed to sell most of its assets and liabilities, including deposits, to ESL Federal Credit Union for $26.2 million in cash.
Generations Bank will retain its equity at the effective time of the P&A transaction, with some adjustments.
The Boards of Directors of ESL Federal Credit Union and Generations unanimously approved the transaction.
After settling all obligations, Generations Bank will liquidate, and Generations Bancorp will distribute its assets to shareholders in two payments.
Shareholders are estimated to receive between $18.00 and $20.00 per share, with the majority expected within six to nine months after the transaction closes, and the remainder six to nine months after the first payment.
The sale is expected to close in the late second quarter or third quarter of 2025, pending regulatory and shareholder approvals and other conditions.
Currently, Generations Bancorp has 2.24 million outstanding shares. Eligible depositors from Generations’ second-step conversion may receive liquidation payments.
The transaction allows ESL Federal Credit Union to expand in the Greater Rochester and Finger Lakes region, growing to $9.6 billion in assets and over 30 branches across Seneca, Cayuga, Orleans, and Ontario Counties.
Faheem Masood, President and Chief Executive Officer of ESL Federal Credit Union, said, “This deal is a strong fit for ESL and Generations because both organizations are committed and dedicated to serving their employees, customers and their communities.”
In a separate statement, Generations Bancorp NY announced its voluntary decision to delist its common stock from Nasdaq and its intent to deregister its common stock with the SEC.
Following delisting from Nasdaq, the company expects its common stock to be quoted on the OTCQX Market beginning on October 7, 2024, and expects to retain the symbol “GBNY.”
Price Action: GBNY shares are up 39.5% at $15.35 premarket at the last check Monday.
Image via Shutterstock
Read Next:
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
