CA Bancorp, a Canada-based merchant bank, has entered into an agreement to sell all of its units in the capital of Charter Real Estate Investment Trust (Charter REIT) to IGW Public Limited Partnership, an affiliate of League Assets, at a sale price of $1.45 per unit.
CA Bancorp holds 6.05m units, representing approximately 33% of the outstanding units of Charter. The sale is expected to close on June 3, 2010, and to yield gross proceeds to CABancorp of approximately $8.77m.
In connection with the sale, the management agreement dated March 27, 2007 between Charter and CA Realty Management (CARM), a wholly owned subsidiary of the company, will be terminated and Charter will enter into a new management agreement with LAPP Global Asset Management , a subsidiary of IGW, in a form mutually acceptable to Charter and LAPP.
In addition to the management agreement, the company and CARM have agreed to provide certain transitional services to LAPP to assist LAPP in performing its obligations under the management agreement.
LAPP will pay to CA Bancorp an amount necessary to cover the company’s reasonable expenses in carrying out its duties in respect of the transitional services.