Hilltop Holdings buying rest of SWS GroupApril 1, 2014
DALLAS (AP) — Hilltop Holdings Inc. of Dallas is buying the rest of SWS Group that it doesn't already own in a deal that values the regional bank and financial services provider at about $260.8 million.
Hilltop Holdings, a financial holding company, already owns a 24 percent interest in SWS Group's common stock.
The boards of both Dallas-based companies unanimously approved the deal announced Tuesday. It still requires approval by SWS shareholders and regulators. The SWS acquisition is targeted to close before year's end.
Under terms of the deal, SWS Group Inc. shareholders will receive 0.2496 shares of Hilltop common stock and $1.94 of cash. This equals $7.88 per share based on Hilltop's Monday closing price.
In January, Hilltop had offered $7 per share for SWS.
Hilltop owns PlainsCapital Corp., a bank franchise based in Texas. Hilltop also owns National Lloyds Corp., which provides property and casualty insurance through two insurance companies, National Lloyds Insurance Co. and American Summit Insurance Co.
SWS shares climbed 41 cents, or 5.5 percent, to $7.89 in premarket trading Tuesday. Hilltop shares closed at $23.79 on Monday.