Greater Community Bancorp has entered into an agreement to merge with and into Valley National Bancorp.
Greater Community Bancorp is the holding company for Greater Community Bank, a commercial bank with 16 full-service branches in the northern New Jersey counties of Bergen, Passaic and Morris.
Under the terms of the merger agreement, which has been unanimously approved by the boards of directors of both companies, Valley will issue 0.95 shares of its common stock for each outstanding common share of Greater Community.
In addition, for each 10 shares of Greater Community held, Valley will issue one warrant to buy one share of Valley common stock at a price equal to $2 above Valley’s average closing stock price for a period of time prior to closing, as specified in the merger agreement.
Cash will be paid in lieu of fractional shares and warrants, and holders of Greater Community stock options will be entitled to a cash payment, calculated in accordance with the terms of the merger agreement.
Based on Valley’s March 19, 2008 closing price of $19.96, the total consideration is estimated to be $167 million. Valley anticipates the closing to occur late in the third quarter of 2008, contingent upon receiving regulatory approvals, approval by the Greater Community shareholders and other customary closing conditions.