By Tess Stynes
Renasant Corp. /zigman2/quotes/200892803/composite RNST +1.88% agreed to acquire First M&F Corp. in a stock-based deal valued at an estimated $115.2 million, expanding Renasant's presence in key markets in Mississippi, as well as the Birmingham and the Memphis regions.
First M&F holders will receive 0.6425 shares of Renasant common stock, or $12.49 a share, based on Wednesday's close. The amount represents a 48% premium to First M&F's Wednesday close. The stock last traded at that level about 4 1/2 years ago.
Shares of First M&F were up 40% at $11.84 in recent trading, reflecting the estimated offer price.
The merger with First M&F, the parent of Mississippi-based Merchants & Farmers Bank, also is expected to double Renasant's insurance operations, and complement its mortgage and wealth-management divisions.
The deal, expected to close in the third quarter, will create the fourth-largest bank by deposits in Mississippi, and will have combined assets of about $5.8 billion.
Renasant shares were down 1.4% at $19.17.
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