Omega currently has assets of $1.1 billion, and Suncorp has $1 billion in assets. SunBank will retain its name and operate as a division of Omega. Robert J. McCormack, Sun Bancorp's president and CEO, will serve as president of the division and also become EVP and chief administrative officer of Omega Financial.
Under terms of the merger agreement, Sun Bancorp shareholders are entitled to receive $23.25 in cash for each share of common stock or exchange each for 0.664 shares of Omega common stock. However, in the overall transaction, 20% of Sun Bancorp shares will be exchanged for cash, and 80% will be exchanged for Omega shares. Shares in both companies are traded on the NASDAQ; Omega under OMEF, and Sun under SUBI.
The transaction has been approved by both companies' boards of directors and is subject to regulatory and shareholder approvals. Completion of the acquisition is expected to take place late in the third quarter or early in the fourth quarter of this year.
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