WesBanco Signs All-stock $959 Mln Merger Deal With Premier Financial

(RTTNews) - Friday, WesBanco, Inc. (WSBC) announced a merger agreement with Premier Financial Corp. (PFC), a deal that is set to be an all-stock transaction. Furthermore, the merger is anticipated to qualify as a tax-free reorganization.

As per the agreement, shareholders of Premier will receive 0.80 shares of WesBanco common stock for each share of Premier common stock they own. The total merger value is approximately $959 million, or $26.66 per share, based on WesBanco's closing stock price of $33.32 as of July 24, 2024.

Additionally, WesBanco has inked subscription agreements with investors to secure capital for the merger, including a $125 million investment from Wellington Management and other investors. In total, $200 million of WesBanco common stock will be issued. The capital raise is expected to conclude on August 1, 2024.

Once the merger is completed, the shares allocated to Premier shareholders are predicted to make up 30 percent of the combined company's outstanding shares, while the shares from the capital raise will represent 8 percent. WesBanco shareholders are expected to retain 62 percent of the outstanding shares of the combined entity.

The transaction will also bolster WesBanco's footprint by adding 73 financial centers primarily located in northern Ohio, as well as in southern Michigan and northeastern Indiana.