Criimi Mae Sold To Canadian Firm

CDP Capital Financing, a subsidiary of Caisse de depot et placement du Quebec, is acquiring Criimi Mae in a transaction valued at about $328 million.

A subsidiary of CDP Capital will merge into Criimi Mae and Criimi Mae's common shareholders will be paid $20 in cash, Criimi Mae, a commercial mortgage investor and servicer, reports. Barry S. Blattman, chairman and CEO, Criimi Mae, said, "Through a competitive bidding process, the board of directors has helped our shareholders realize value for their shares at a significant premium to the current trading price."

If approved by Criimi Mae shareholders, the merger is expected to go through in the first quarter of 2006.BREF One, a major shareholder of Criimi Mae that holds about 7.8% of Criimi's outstanding common stock, has agreed to vote in favor of the merger, according to Criimi Mae.

The merger agreement allows Criimi Mae to solicit other acquisition proposals.

If the merger agreement is terminated, Criimi Mae will pay a fee of up to $2 million for reimbursement of CDP's expenses.

And after January 2006, there is also a breakup fee associated with the termination of the merger agreement of $8 million.

After closing at $15.21 on Oct. 6, Criimi Mae shares went up to $19.40 on Oct. 7, following the release of the acquisition news.

Earlier this year, Caisse de depot et placement du Quebec, a fund manager that primarily manages pension plans, also bought up Allied Capital's commercial mortgage-backed securities portfolio and collateralized debt obligation assets for about $976 million.

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