Generations Bancorp NY soars on buyout deal with ESL Federal Credit Union

Generations Bancorp NY

24/09/2024 13:06

** Generations Bancorp NY's  GBNY.O  shares jump 40% to
$15.36 premarket 
    ** The community lender agrees to sell its banking unit,
Generations Bank, to Rochester-based ESL Federal Credit Union
for $26.2 mln in cash  
    ** The deal, which is expected to close late in Q2 or in Q3
of 2025, bolsters ESL's presence throughout the Greater
Rochester and Finger Lakes region as well as in Ontario County
    ** GBNY will wind down after the deal and distribute its
assets to its shareholders, likely in two separate payments 
    ** Holding companies such as GBNY are often shuttered after
they offload their banking units, which are their primary assets
    ** GBNY shareholders expected to receive between $18 and $20
in cash for each share held, well above stock's last close of
$11  
    ** As of last close, GBNY shares up 8.5% YTD  

 (Reporting by Arasu Kannagi Basil in Bengaluru)
 ((ArasuKannagi.Basil@thomsonreuters.com;))