EDMONTON, Alberta -
Carfinco Income Fund said recently that its board of directors will be evaluating the various options the company has for boosting unit-holder value, and among the potential strategic alternatives that will be considered is the possible sale of the Alberta-based company.
The company turned to FBR Capital Markets & Co. for guidance during the review process. FBR has been given permission by the board to connect with parties possibly interested in a transaction.
In discussing the various options, officials stressed, however, that selling all or most of Carfinco’s units or assets is not the only option on the table.
And Carfinco emphasized that the review does not necessarily mean that a transaction — of any kind — will happen at all.
“There can be no assurance that the fund’s review of strategic alternatives will result in any specific transaction,” the company pointed out. “The fund does not expect to disclose any further developments with respect to the exploration of strategic alternatives unless and until its board of trustees has approved a transaction or other strategic alternative.”
The company also stressed that during the review process, Carfinco’s existing business objectives will remain intact.
“Carfinco is a leading and highly profitable non-traditional auto lender and we see significant potential for growth and expansion of our product offerings,” said David Rosenkrantz, chairman of the board.
“In addition, because of our size and unique market positioning, we are seeing new opportunities: opportunities that are different, yet related to our core business,” he continued. “This review is a logical step in our growth and in determining what is best for the fund and all of its unit-holders.”