Stockholders Approve US Farm Bank Merger
8 September 2011 Voting stockholders have approved the proposed plan of merger between CoBank and US AgBank, according to the press release.
Ballots for the merger vote were formally tabulated at special meetings held yesterday at the banks’ headquarters in Colorado and Kansas, United States. The stockholders of both organizations approved the merger by substantial majorities.
“Stockholder voting is a critical step in merger approval process,” said John Eisenhut, chairman of US AgBank in a statement. “We look forward to receiving final regulatory approval and closing the merger at the beginning of the year. When accomplished, we can begin delivering the numerous benefits that this transaction offers to our customers across the country.”
CoBank and US AgBank executed a Letter of Intent to merge in December 2010. The merged bank will continue to do business under the CoBank name and be headquartered in Colorado but will maintain US AgBank’s existing presence and operations in Wichita, Kansas, and Sacramento, California. It will also continue to be organized and operate as a cooperative, with eligible borrowers earning cash and equity patronage based on the amount of business they do with the organization, according to the release. Robert B. Engel, CoBank’s president & chief executive officer, will remain as the chief executive of the combined entity. Darryl W. Rhodes, president & chief executive officer of US AgBank, will retire in connection with the merger.
The Farm Credit Administration has already granted preliminary approval to the transaction. Final approval from the FCA is expected following a statutorily required 35-day reconsideration period.
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