Business
Crown Capital Announces Divestiture of a Majority Interest in its Alternative Corporate Financing Business
Crown Capital Announces Divestiture of a Majority Interest in its Alternative Corporate F...
About this update from Crown Capital Partners, Inc.
[{"type":"text","content":"\n \n \n \n Crown Capital Announces Divestiture of a Majority Interest in its Alternative Corporate Financing Business\n \n \n /* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prntac{\nTEXT-ALIGN: CENTER\n}\n \n \n \n \n \n \n Canada NewsWire\n \n \n \n \n \n Accelerates Crown's plans to redirect capital and focus on strategic initiatives\n \n \n \n \n CALGARY, AB\n \n ,\n \n July 13, 2021\n \n /CNW/ - Crown Capital Partners Inc. (\"Crown\" or the \"Company\") (TSX: CRWN) today announced the closing of the divestment of a majority stake in Crown Private Credit Partners Inc (\"CPCP\"), its alternative corporate financing business, and a portion of its investment in Crown Partners Fund. This transaction accelerates Crown's plans to redirect capital toward strategic initiatives that are consistent with the Company's objectives announced in\n \n May 2020\n \n .   Crown will focus on expanding and scaling its growth platforms in its Network Services and Distributed Power businesses as well as returning capital to shareholders.  Crown management will provide a fulsome update on its strategy and operational progress concurrent with its Q2 2021 financial results conference call on\n \n August 13, 2021\n \n .\n \n \n \n Transaction Highlights\n \n \n \n \n \n Crown will receive proceeds of approximately\n \n $16 million\n \n from the sale of a portion of its investment in Crown Partners Fund.  The transaction is being completed at 100% of the net asset value of Crown Partners Fund units, which approximates Crown's carrying value. Crown will retain a 28% ownership interest in Crown Partners Fund, compared with its current ownership interest of 36.5%.\n \n \n The ownership group of the purchasing entity, CPCP, reflecting Crown's divestment of its majority stake, now includes Canadian Western Bank (\"CWB\"), Concentra Bank (\"Concentra\"), Mount Logan Capital Inc. (\"MLC\") and certain management participants. Crown will retain a 12.5% minority interest in CPCP.  CPCP has nominal current value and the transaction will not have a meaningful earnings impact on Crown.\n ...