- Rifco Inc. (RFC) is being acquired by CanCap Group Inc. for C$25.5 million
- CanCap Group is purchasing all issued and outstanding shares of Rifco Inc. at C$1.18 a share
- This is around a 40 per cent premium on the share’s previous valuation
- Rifco Inc’s Board of Directors unanimously agree this is the best route for the company.
- Both companies specialise in automotive financing
- Rifco Inc.’s (TSXV: RFC) was up 36 per cent, with shares currently trading at C$1.16
Automotive financing company, Rifco Inc (RFC) announced today that it is being acquired by CanCap Group Inc.
CanCap Group has agreed to purchase all issued and outstanding shares at C$1.18, which is a 39 per cent mark-up on the company’s closing share price and the end of last week.
This share buy-out is valued at C$25.5 million.
A special committee formed by Rifco Inc.’s Board of Directors has unanimously recommended the acquisition.
“The Special Committee of the Board of Directors ran an exhaustive process, the completion of which is the proposal we are putting to shareholders today,” stated Bill Graham, President and Chief Executive Officer of Rifco Inc.
“The Board considered numerous alternatives, and the proposed transaction provides immediate liquidity and certainty of value and we believe it to be in the best interest of shareholders.”
Both Canadian companies handle financing solutions for automotive dealerships. CanCap Group Inc. also owns operations for short term public loans as well as merchant financing.
Steve Malone, President & COO of CanCap Group Inc. see’s the deal as a great acquisition for CanCap Group Inc.
“The combination of ACC and Rifco creates a strong foundation to accelerate growth nationally in this competitive market.”
Rifco Inc.’s (RFC) was up 36 per cent, with shares currently trading at C$1.16