Dallas, Texas 09/13/2013 (Financialstrend) – The 1st Constitution Bancorp (NASDAQ:FCCY) is a company registered under the bank Holding Company Act of 1956. This is a Bank Holding Company which have been operating within the company structure for 1st constitute bank. The primary business activity conducted by it is investment in the bank.
The latest news from the industry states that the 1st Constitution Bancorp has entered in to a plan of merger with the Rumson-Fair Haven Bank and Trust Company. On 19th August, 2013 it was declared that the hustle about the true companies entering in to the merger is indeed a true fact. They have entered into a definitive agreement concerning the issue of the merger.
In the definitive agreement the preliminary terms of the merger are discussed. The Rumson-Fair Haven Bank and Trust Company will not only be merged with the 1st Constitution Bancorp but they will be into the 1st Constitution Bancorp. And, the 1st Constitution Bancorp will obviously be operating as the surviving bank holding company.
The further details of the merger agreement
In this announcement it was also disclosed about the financial structure involved in the said merger. In accordance with the term it has been decided by both the companies that the common stock for the Rumson-Fair Haven Bank and Trust Company will be exchanged for about 60% cash in an aggregate. The rest 40% will be given in from of the common stock for 1st Constitution Bancorp.
In the agreement for the merger it was also decided that each and every share holder will be entitles to receive a share of the common stock for the 1st Constitution Bancorp. The amount is calculated to be around $7.50 per share. That indeed will prove to be good news for the shareholders of the Rumson-Fair Haven Bank and Trust Company.