RTTNews | Sep 16, 2021 10:10AM EDT

10:10 Thursday, September 16, 2021 (RTTNews.com) - Shares of First Interstate BancSystem, Inc. (FIBK) are down more than 7% Thursday morning after the company agreed to combine with Great Western Bancorp, Inc. (GWB) in an all-stock transaction with an implied value of about $2 billion.

As per the deal, GWB will merge into FIBK and the combined company will operate under the name First Interstate. GWB shareholders will have 43% stake in the combined company by receiving .8425 shares of FIBK Class A common stock for each GWB share they own.

"The combined company leverages the strengths of both organizations, creating a diversified, community-focused banking franchise with a network of more than 300 branches across 14 states. With assets totaling over $32 billion, the pro forma company establishes FIBK as the premier banking franchise in the West," the companies said.

The transaction is expected to close during the first quarter of 2022 and the conversion of GWB branches to FIBK branches is expected to take place during the second quarter of 2022.

FIBK, currently at $38.98, has traded in the range of $30.02- $51.24 in the last one year.

Read the original article on RTTNews ( https://www.rttnews.com/3226315/interstate-bancsystem-drops-7-to-merge-with-great-western-bancorp.aspx)

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