Vancouver-based Maxam Capital Corp. plans to acquire Toronto's C.A. Bancorp Inc. (TSX:BKP) in an all-cash offer worth approximately $32.6 million.
Maxam Opportunities Fund LP and Maxam Opportunities Fund (International) LP, which are managed by Maxam Capital, announced the deal Thursday and plan to offer C.A. Bancorp shareholders $1.22 per share.
The deal represents a premium of approximately 20% to the volume-weighted average trading price of C.A. Bancorp over the past 30 trading days and a 10% premium to the closing price on December 2.
Maxam said the deal gives C.A. Bancorp shareholders the opportunity to cash in on their investment at a significant premium given the relatively illiquid nature of the company's shares, which have an average trading volume of 43,000 over the past six weeks.
Maxam plans to commence the offer on December 7, which will expire January 12, 2010 unless extended or withdrawn.
Maxam Capital has $100 million in committed capital under management to invest in mid-market companies. The firm was formed last August by managing partners Johnny Ciampi and Sean Morrison after seeing opportunities in the market to provide capital to companies looking for financing in the aftermath of the global financial crisis.