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Message: Announces Completion of Sale of AgriFinancial Canada Corp.
| February 2, 2009 |
| C.A. Bancorp Inc. Announces Completion of Sale of AgriFinancial Canada Corp. to Western Financial Group Inc. |
| TORONTO, ONTARIO--(Marketwire - Feb. 2, 2009) - C.A. Bancorp Inc. (TSX:BKP) ("C.A. Bancorp") and Sentry Select Total Strategy Fund (TSX:TSF.UN) ("Total Strategy") are pleased to announce that they have completed the previously announced sale of AgriFinancial Canada Corp. ("AgriFinancial") to Western Financial Group Inc. (TSX:WES) ("WFG") (the "Transaction"). The purchase price at closing was $21.00 million ($20.48 million after transaction fees). C.A. Bancorp received approximately $18.40 million in cash and $0.13 million in loans receivable for total net consideration received of $18.53 million. Total Strategy received approximately $1.95 million in cash. The final purchase price of the Transaction is subject to post-closing adjustments based on the net book value of the AgriFinancial as at end of day, January 30, 2009. "We are extremely pleased to have completed the sale of AgriFinancial and the investment returns that have been generated on our original $10.5 million investment. This Transaction is representative of the potential value accruing within our remaining private equity portfolio," said Mark Gardhouse, President of C.A. Bancorp. "The C.A. Bancorp management team worked very closely with AgriFinancial over the past 16 months implementing a series of initiatives that has repositioned the company to capitalize on the growing Canadian agricultural sector. The sale to WFG will enable AgriFinancial to continue to provide industry leading financial products and outstanding service across WFG's new expanded customer base." It was previously announced that contemporaneous with the closing of the Transaction, C.A. Bancorp would provide $3.0 million in short term subordinated debt financing to WFG. WFG no longer requires the debt financing, and therefore, that financing will not be proceeding. The Transaction The Transaction was effected through a sale of all of the issued and outstanding shares of C.A. Bancorp Financial Corp. ("Financial Corp") to Bank West, WFG's wholly-owned bank. Financial Corp owned all of the issued and outstanding shares of AgriFinancial. C.A. Bancorp and Total Strategy were the sole shareholders of Financial Corp, with C.A. Bancorp holding approximately 90% and Total Strategy holding approximately 10% of its issued and outstanding shares. The total invested capital was $10.5 million. |
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