Alliance Bancorp, Inc. Of Pennsylvania Announces Completion Of Syndicated Community Offering; Conversion Expected To Close January 18, 2011
BROOMALL, Pa., Jan. 11, 2011 (GLOBE NEWSWIRE) -- Alliance Bancorp, Inc. of Pennsylvania (the "Company") (Nasdaq:ALLB), the holding company for Alliance Bank, announced today that the proposed new holding company for Alliance Bank, a Pennsylvania corporation also known as Alliance Bancorp, Inc. of Pennsylvania ("Alliance Bancorp—New") has received orders to purchase common stock sufficient to complete the offering being conducted in connection with the second-step conversion of Alliance Bank. The conversion and offering are expected to be completed on January 18, 2011. The closing of the transaction is subject to the satisfaction of customary closing conditions.
As a result of the conversion and offering, Alliance Mutual Holding Company and the Company will cease to exist and Alliance Bancorp—New, the state chartered corporation formed to facilitate the conversion, will become the parent holding company of Alliance Bank and will be wholly owned by public shareholders.
A total of 3,258,475 shares of common stock, slightly above the mid-point of the offering range, will be sold in the subscription, community and syndicated community offerings at $10.00 per share for gross proceeds of $32.6 million. All orders properly submitted in the subscription and community offerings will be filled in whole. Concurrent with the completion of the offering, the outstanding shares of the Company common stock (except for the shares owned by Alliance Mutual Holding Company, which will be cancelled) will be exchanged for shares of Alliance Bancorp—New common stock. As a result, each existing share of Company common stock will be converted into the right to receive 0.8200 of a share of Alliance Bancorp—New common stock. The exchange ratio ensures that, after the conversion and offering, the public shareholders will maintain approximately the same ownership interest in Alliance Bancorp—New as they owned in the Company. Cash will be issued in lieu of fractional shares based on the offering price of $10.00. Upon completion of the conversion, the total shares outstanding after the stock offering and the exchange will be approximately 5,474,710 shares. The Bank's Employee Stock Ownership Plan ("ESOP") will purchase an aggregate of 150,991 shares, or 4.63% of the common stock in the offering. Of the total shares purchased by the Bank's ESOP, 50,991 shares of common stock will be purchased in the subscription offering and the ESOP intends to purchase the remaining 100,000 shares of common stock in the open market from time-to-time following completion of the conversion.
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