Benzinga | Feb 26, 2021 09:15AM EST

Magyar Bancorp Reports Adoption Of Plan Of Conversion, Reorganization Via Second-Step Stock Offering, No Size Disclosed

Magyar Bancorp, Inc. (NASDAQ:MGYR) (the "Company"), parent company of Magyar Bank, announced today that its Board of Directors, together with the Board of Directors of Magyar Bancorp, MHC (the "MHC"), has adopted a Plan of Conversion and Reorganization (the "Plan of Conversion").

Pursuant to the Plan of Conversion, the Company will reorganize into a fully public stock holding company structure and as part of the conversion will conduct a second-step stock offering of new shares of common stock.

As part of the conversion, the MHC will merge into the Company and will cease to exist, and shares of the Company's common stock held by persons other than the MHC will be exchanged for new shares of the Company's common stock pursuant to an exchange ratio generally intended to preserve the percentage ownership interests of such persons in the Company upon consummation of the conversion. Shares of Company common stock owned by the MHC will be canceled and the amount of the MHC's ownership interest in the Company will be sold through the second-step stock offering. In the stock offering, depositors of Magyar Bank with qualifying deposits as of December 31, 2019 will have first priority to purchase the new shares of common stock.

The conversion and offering will have no impact on depositors, borrowers or other customers of Magyar Bank. The transactions contemplated by the Plan of Conversion are subject to approval by the Company's stockholders (including approval by a majority of the shares held by persons other than the MHC), the depositors of Magyar Bank, the Board of Governors of the Federal Reserve System and the New Jersey Department of Banking and Insurance.

A prospectus or proxy statement/prospectus, as applicable, and other materials containing detailed information relating to the Plan of Conversion, details of the offering, and business and financial information about the Company will be sent to stockholders of the Company and depositors of Magyar Bank following receipt of regulatory approval.