Investar Holding Corporation (NASDAQ:ISTR) to acquire Cheaha Financial Group and Cheaha Bank

Investar Holding Corporation (NASDAQ:ISTR)  stock observed trading -4.72% off 52-week high price. On the other end, the stock has been noted 29.36% away from low price over the last 52-weeks. The stock disclosed a move of 1.74% away from 50 day moving average and 6.28% away from 200 day moving average. Moving closer, we can see that shares have been trading 0.53% off 20-day moving average. It has market cap of $247.56M and dividend yield of 0.95%.

On Dec. 20, 2019, Investar Holding Corporation (NASDAQ:ISTR) the holding company for Investar Bank, National Association, revealed that it has entered into a definitive agreement (the Agreement) to acquire Cheaha Financial Group (Cheaha), headquartered in Oxford, Alabama, and its wholly-owned subsidiary, Cheaha Bank. In connection with the Cheaha transaction, Investar also announced  the execution of a stock purchase agreement with selected institutional and other accredited investors with respect to a private placement of $30.0 million of its common stock.

Cheaha Financial Group Transaction

The terms of the Agreement provide that Cheaha shareholders will receive $80.00 in cash consideration for each of their shares of Cheaha common stock, for an aggregate value of approximately $41.1 million.

At September 30, 2019, Cheaha Bank had approximately $206.7 million in assets, $117.2 million in net loans, $177.1 million in deposits and $27.5 million in stockholder’s equity. Cheaha Bank offers a full range of banking products and services to individuals and small businesses from four branch locations in Calhoun County, Alabama.

Shad A. Williams, President and Chief Executive Officer of Cheaha stated, We were only interested in a merger partner that believed in the deep relationships between the bank and the community it serves. Investar is that organization and I believe we are extremely fortunate to have found such a stellar partner for our employees and community. We love its commitment to Alabama and strong culture. I could not be more pleased.

The USA based company Investar Holding Corporation moved with change of -0.43% to $25.21 with the total traded volume of 32665 shares in recent session versus to an average volume of 14.83K. The stock was observed in the 5 days activity at -2.74%. The one month performance of stock was 1.61%. ISTR’s shares are at 5.30% for the quarter and driving a 13.46% return over the course of the past year and is now at 1.65% since this point in 2018.  Right now the stock beta is 0.16. The average volatility for the week and month was at 2.07% and 2.49% respectively. There are 9.82M shares outstanding and 9.18M shares are floated in market.

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