Carfinco Chooses Not to Pursue WFI & Global Track Acquisition Any Further

Carfinco announced this week it has decided not to provide the highest purchase price in its bid to acquire new equity ownership of Western Funding Inc. and Global Track GPS LLC.  

On Nov. 1, Carfinco had previously announced that it had become the "stalking horse bidder" and proposed plan sponsor for the companies, each of which had commenced a Chapter 11 bankruptcy case on Sept. 4 in the United States Bankruptcy Court for the District of Nevada.

Amongst other conditions, the completion of the transactions was subject to a sale process for competing bids, which took place  earlier this week.

"The bidding reached a purchase price which exceeded management's upper threshold for risk versus returns on equity deployed," stated Tracy Graf, chief executive officer of Carfinco. "Management will continue to actively pursue potential acquisitions in Canada and in the U.S. that will add value to our shareholders."

Auto Remarketing Canada reported earlier this year the Carfinco Financial Group expansion into the U.S. with the purchase of Massachusetts-based Persian Acceptance Corp. (PAC), an indirect lender in the subprime retail automotive industry, from Peter and Jennifer Miller.

Key members of PAC management will remain in place under the continuing leadership of founder and president Peter Miller, officials explained, and PAC will operate as a subsidiary of the Carfinco.

The acquisition was closed on Sept. 4.

For more on this acquisition, see the Auto Remarketing Canada story here.

Carfinco Financial Group Inc. also announced a cash dividend has been declared for this month.

The dividend of four cents per share has a payable date of Dec. 31.

The record date is Dec. 20 and the ex-distribution date was Dec. 18, the company shared.

And this isn’t the first time the shareholders have enjoyed such a dividend.  

"For the past number of years, the company has provided an additional special distribution to shareholders in December." stated Graf.

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