Bancinsurance, a specialty property and casualty insurance holding company, has agreed to be acquired for $8.50 per common share in cash by some of its own shareholders.

The acquiring company will be owned by John Sokol (chairman of board, CEO and president of Bancinsurance), Barbara Sokol, James Sokol, Carla Sokol, Falcon Equity Partners, Matthew Walter (a member of board of directors of Bancinsurance), Daniel Clark, Joseph LoConti, Edward Feighan and Charles Hamm, at the time of merger.

As per the terms of agreement, Bancinsurance’s shareholders would receive $8.50 per common share in cash, representing a 70% premium over the $5 per common share closing price on 19 March 2010.

The company said that its board of directors has unanimously adopted the merger agreement and approved merger and recommended that its shareholders vote in favor of the adoption of merger agreement and approval of merger.

The transaction is expected to be completed in the fourth quarter of 2010, subject to regulatory approvals and other customary closing conditions.