CharterMac to Buy Related Capital

Charter Municipal Mortgage Acceptance Co., New York, has agreed to acquire 100% of the ownership interests of Related Capital Co. and "substantially all" the businesses operated by RCC in a transaction valued at up to $338 million.CharterMac, a financier of multifamily housing, said the acquisition will enable it to end its outside management agreement with Related Charter LP, an RCC affiliate, and become a self-advised and self-managed company. The terms of the deal include an initial payment of $210 million in stock and cash and a contingent payment of up to $128 million in stock, depending on the determination of RCC's adjusted audited earnings for the year ending Dec. 31. "The acquisition of Related Capital will allow CharterMac to further diversify its revenue sources and expand its business lines, while eliminating the perceived conflicts of interest associated with an external management structure," said Stuart J. Boesky, CharterMac's chief executive officer. The investment banking firm of Dresdner Kleinwort Wasserstein acted as financial adviser to the Special Committee of CharterMac's board of trustees that explored its strategic alternatives. The company can be found on the Web at http://www.chartermac.com.