Snyder's shareholders compensation in merger with Lance outlined

Shareholders who currently own pieces of Snyder's of Hanover could end up holding a total of $585.9 million worth of publicly traded Lance stock through a proposed merger plan with the sandwich cracker maker.

A letter was filed to the federal Securities and Exchange Commission last week, detailing this and some of the other moves that would help create the new future for both snack food makers.

For Snyder's shareholders specifically, they would receive the right to 108.25 shares of publicly traded Lance stock for each share they now have in privately held Snyder's.

This would happen as the Snyder's company is merged with a wholly owned subsidiary of Lance, leaving Snyder's as the surviving subsidiary under Lance.

However, at the same time, the stock in Lance being transferred to Snyder's ownership would result in the former Snyder's shareholders owning a total of 50.1 percent of Lance. Lance will then be named Snyder's-Lance Inc.

The remaining 49.9 percent of the Snyder's-Lance would be owned by Lance shareholders, who are also set to receive a $3.75 dividend payment per share -- if they approve the deal and it goes through.