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Union Bankshares to buy Xenith Bankshares, get $11.9 billion in assets

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Staff Writer |
Union Bankshares
Acquisition   $29.67 per share

Union Bankshares said it would acquire rival Xenith Bankshares Inc in an all-stock deal valued at nearly $695 million, as the U.S. community lender looks to expand into North Carolina and Maryland.

Richmond, Virginia based-Union Bankshares' offer of 0.9354 shares for each Xenith share translates to $29.67 per share and is at a 10.4 percent premium to Xenith's Friday close.

Shares of Xenith, also based in Richmond, were up 4.7 percent at $28.14 in light premarket trading.

"We expect that our combined statewide footprint will bring additional convenience to our customers and position us as a strong competitor against large regional institutions and smaller community banks alike – making us the pre-eminent community bank in Virginia," John Asbury, chief executive of Union Bankshares, said in a statement.

The deal value of $695 million was calculated based on Xenith's diluted shares outstanding of 23.41 million, as of March 31. The companies said the deal was valued at $701.2 million based on Union Bankshares' closing price of $31.72 on May 19.

The combined company would have total assets of $11.9 billion, total deposits of $9.2 billion and gross loans of $8.9 billion.

The deal is expected to close in early January 2018, subject to conditions including regulatory and shareholder approvals.

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