Latest News

Fatal Daviess County Accident Leaves Daviess County Man Behind Bars JCA Holding Unveiling Reception for Two New Murals in Jasper Jasper Single-Vehicle Accident Causes $10,000 in Damages The Annual German-American Day Program and German Heritage Award Ceremony are Set for October 5th The Organic Dairy Marketing Assistance Program is Making a Second Payment to Dairy Producers

Jasper-based German American Bancorp has expanded its footprint across Southern Indiana.

In a news release, company officials say the bank has entered into a definitive agreement to merge River Valley Bancorp into German American. Under the terms of the agreement, River Valley common shareholders will get 0.770 shares of German American common stock for each share of River Valley common stock along with a cash payment of $9.90 per River Valley share. The exchange is tax free.

GAB officials say the exchange has a value of $33 per River Valley share, which represents a 47% premium over the closing price of River Valley’s common stock shares. The math is based on closing stock prices of common shares as of this past Friday, October 23rd.

Now German American is expecting to issue about 1.94 million shares of its common stock and pay about $25 million in cash for all issued and outstanding common shares and outstanding options of River Valley.

In all, the merger has an aggregate indicated value of about $83.5 million. The basic transaction will also feature about $500,000 in cash payments that will be made in cancellation of stock options.

The merger is set to be completed early next year.

Leave a Reply

Your email address will not be published. Required fields are marked *