Noah Bank in Elkins Park, Pennsylvania, is weighing competing takeout offers.
The $317 million-asset bank said Thursday that it had received a buyout offer from NMB Financial Corp., the $541 million-asset parent of New Millennium Bank in Fort Lee, New Jersey.
Both the proposed buyer and potential seller focus on Korean American communities.
The privately held Noah Bank said it had been offered up to $6.95 per share. NMB estimated that Noah had 4.235 million shares outstanding.
However, the deal is subject to “a number of potential purchase price adjustments” that “make it impossible” to “determine at this time the final proposed purchase price,” Noah Bank said in a press release.
Earlier this month, Noah Bank reached a stock purchase agreement with a private investor group valued at $10 million. That deal would give the investor group control of the bank.
Noah “intends to entertain discussions with NMB regarding questions it has with respect to the NMB proposal as well as to offer NMB the opportunity to conduct due diligence on Noah Bank and Noah Bank to similarly conduct due diligence on NMB and its proposal,” Noah said in the release. “There can be no assurance that such discussions or diligence, to the extent they occur, will result in any definitive transaction between NMB and Noah Bank.”
NMB said in its own release the deal with private investors would come “at a significant discount to Noah’s existing book value per share,” and added, “Noah’s existing shareholders could realize a significant dilution to their book value per share at the same time that majority control is transferred to the private investor group.
“Alternatively, the combination of NMB and Noah would create a significant Korean-American banking franchise on the East Coast and is anticipated to provide significant cash value to Noah’s existing shareholders,” NMB said.
