INFOR Acquisition Corp (TSX: IAC.A), a $220 million Canadian special purpose acquisition corporation (SPAC), has cancelled plans to participate in the spin-out of ECN Capital from Element Financial Corp (TSE: EFN). The deal, announced in July, would have seen INFOR shareholders receive shares of ECN, a commercial finance business. INFOR said ECN’s shares are not trading at a price that would make the deal “compelling” to its investors. It added that INFOR management will continue to review alternative transactions.
INFOR Acquisition Corp. Announces Termination of IAC Arrangement with ECN Capital Corp.
TORONTO , Oct. 12, 2016 /CNW/ – INFOR Acquisition Corp. (TSX: IAC.A, IAC.WT) (“IAC” or the “Company”) announced today that the arrangement agreement entered into by IAC, Element Fleet Management Corp. (as successor to Element Financial Corporation), 2510204 Ontario Inc. and ECN Capital Corp. (“ECN Capital”) as it relates to the IAC plan of arrangement has been terminated by mutual agreement of the parties. IAC also announced that it has cancelled the special meeting of shareholders of the Company called to consider the proposed arrangement contemplated thereby.
“We are pleased that the separation of Element Financial Corporation into Element Fleet Management Corp. and ECN Capital has been well received by the market. However, ECN Capital’s common shares are not currently trading at a price that would make the arrangement compelling for the Company’s shareholders given the exchange ratio agreed to under the arrangement” said Neil Selfe , Chief Executive Officer of IAC.
Management of IAC will continue to review alternative transactions. Any announcement with respect to a potential qualifying acquisition will only be made by the Company in connection with the entering into of an agreement with respect to such transaction.
About INFOR Acquisition Corp.
INFOR Acquisition Corp. is a special purpose acquisition corporation incorporated under the laws of the Province of Ontario for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization, or engaging in any other similar business combination with one or more businesses or assets.
Visit INFOR Acquisition Corp. at www.inforacquisitioncorp.com
About INFOR Financial Group Inc.
INFOR Financial Group Inc. (“INFOR Financial Group”), the sponsor of INFOR Acquisition Corp., is a leading independent merchant and investment bank based in Toronto . INFOR Financial Group provides innovative, independent, forward thinking financial and strategic advice to corporations, institutional investors, entrepreneurs and government entities. INFOR Financial Group’s asset management division currently is focused on relationship investing and structured private credit investments. INFOR Financial Inc., a wholly-owned subsidiary of INFOR Financial Group, is an independent investment bank that offers advice on mergers and acquisitions, capital raises, risk management, private funds as well as corporate restructurings and derivative hedging strategies. In 2015, INFOR Financial Inc. was ranked as the top independent M&A advisor in Canada .
Visit INFOR Financial Group at www.inforfg.com
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