Prudential Bancorp Inc. Of Pennsylvania Reveals Conversion-Plan Approval

(RTTNews) - Prudential Bancorp Inc. of Pennsylvania (PBIP), the mid-tier holding company for Prudential Savings Bank, Wednesday announced that the Plan of Conversion and Reorganization providing for the "second-step" conversion of Prudential Mutual Holding Co., the company's mutual holding company parent, was approved by the shareholders of the company and the depositors of the Bank at separate meetings held on September 26.

The conversion and offering are expected to be completed on or about October 9. The closing of the transaction is subject to customary conditions.

As a result of the conversion and offering, Prudential Mutual Holding Co. and the company will cease to exist and Prudential Bancorp, Inc. ("Prudential Bancorp-New"), the new Pennsylvania corporation formed to facilitate the conversion, will become the parent holding company of the Bank and will be wholly owned by public shareholders.

A total of 7.14 million shares of common stock of Prudential Bancorp-New are expected to be sold in the subscription offering at $10.00 per share for gross proceeds of $71.4 million.

Concurrent with the completion of the offering, the outstanding shares of the company common stock (except for the shares owned by the mutual holding company, which will be cancelled) will be exchanged for shares of Prudential Bancorp-New common stock.

As a result, each existing share of cCompany common stock is expected to be converted into the right to receive 0.9442 shares of Prudential Bancorp-New common stock. The exchange ratio ensures that, after the conversion and offering, the public shareholders will maintain about the same ownership interest in Prudential Bancorp-New as they owned in the company.

Cash will be issued in lieu of fractional shares based on the offering price of $10.00. Upon completion of the conversion, the total shares outstanding after the stock offering and the exchange is expected to be about 9.55 million shares.

The company's common stock will continue to trade on the Nasdaq Global Market under the trading symbol "PBIP" through October 9. It is anticipated that, beginning on October 10, the shares of Prudential Bancorp-New common stock will trade on the Nasdaq Global Market under the same trading symbol "PBIP."