NEW YORK, Feb. 1, 2016 /PRNewswire/ -- MFC Industrial
Ltd. ("MFC" or the "Company") (NYSE: MIL) announces that it has
completed the acquisition of BAWAG Malta Bank Ltd. (the "Bank").
The Company also announces that its board of directors has
approved changing the Company's name to "MFC Bancorp Ltd."
effective February 16, 2016.
Bank Acquisition
MFC acquired BAWAG Malta Bank Ltd., a Western European bank,
from BAWAG P.S.K. Bank für Arbeit und Wirtschaft und
Österreichische Postsparkasse Aktiengesellschaft for consideration
of EUR 90.8 million, approximately
equal to the net realizable value of the Bank upon
completion. The Bank will be renamed "MFC Merchant Bank Ltd."
to more accurately reflect its future operations. This
acquisition will not have a material impact on MFC's
liquidity.
MFC's corporate goal is to become a premier regulated trade
finance institution, utilizing its supply chain platform as the
foundation to offer banking, trade and structured finance and other
complimentary services, and this acquisition is an important step
toward that goal.
As part of the MFC Group, the Bank will not engage in retail
banking, commercial banking or universal banking, but instead will
provide specialty banking services, focused on structured and trade
finance, to MFC's customers, suppliers, and group members, among
others. These products will include:
- Bank guarantees, letters of credit, documentary bank
guarantees/stand-by letters of credit, bills of exchange, bills of
lading, promissory notes and forwarders' certificate of receipt
facilities;
- With and without recourse factoring;
- Forfaiting;
- Discounting of bills of exchange and promissory notes.
- Purchase financing collateralized by the product;
- Inventory financing collateralized by inventory;
- Structured trade finance, including advisory services, in
conjunction with export credit agencies; and
- Merchant banking products and services.
MFC Merchant Bank Ltd.'s customer deposits will mainly be
comprised of small and medium sized corporate clients, who may also
be trade and structured finance customers, as well as MFC Group
companies and other related entities. In addition, we will
integrate MFC's existing long-standing banking relationships with
the Bank to support our corporate vision.
The back office is a significant burden to a bank because it is
the major driver of operating expenditures. However, in order
to maintain a variable cost structure, the Bank will outsource
major back office services as well as internal functions such as
technology, internal audit and payment services to third
parties.
Name Change
The Company also announces that, in order to better reflect its
focus on trade and structured finance, merchant banking and supply
chain activities, its board of directors has approved the change of
the Company's name back to "MFC Bancorp Ltd.", which will become
effective on February 16, 2016.
The Company's common shares will commence trading on the New
York Stock Exchange under the new symbol "MFCB" as of the open of
trading on February 16, 2016.
Upon completion of the name change, the Company's new website
address will be: www.mfcbancorpltd.com.
Gerardo Cortina, President and
Chief Executive Officer of MFC, commented: "This acquisition is an
important step toward executing our long-term strategy to leverage
our trade finance and supply chain platform by offering additional
complimentary trade and structured finance products. The addition
of an 'in-house' bank to our group enables us to provide our
business partners regulated services and solutions which we believe
will enhance our margin and revenue profile."
He concluded, "We are excited to welcome our new colleagues at
the Bank to our group and look forward to working with them to
enhance value for shareholders."
About MFC
MFC is a finance and supply chain company, which facilitates the
working capital and other requirements of our customers and
suppliers. Our business activities involve customized
structured financial solutions and are supported by captive sources
and products secured by third parties. We do business in
multiple geographies and specialize in a wide range of industrial
products such as metals, minerals, electricity/power, steel
products, ferro-alloys, chemicals and wood products.
Disclaimer for
Forward-Looking Information
This news release contains statements which are, or may be
deemed to be, "forward-looking statements" which are
prospective in nature, including, without limitation, statements
regarding anticipated benefits of the Company's Bank acquisition,
future business prospects and any statements regarding beliefs,
plans, expectations or intentions regarding the future.
Forward-looking statements are not based on
historical facts, but rather on current expectations and
projections about future events, and are therefore subject to risks
and uncertainties which could cause actual results to differ
materially from the future results expressed or implied by the
forward-looking statements. Often, but not always,
forward-looking statements can be identified by the
use of forward-looking words such as "plans",
"expects" or "does not expect", "is expected", "scheduled",
"estimates", "forecasts", "projects", "intends", "anticipates" or
"does not anticipate", or "believes", or variations of such words
and phrases or statements that certain actions, events or results
"may", "could", "should", "would", "might" or "will" be taken,
occur or be achieved. Such statements are qualified in their
entirety by the inherent risks and uncertainties surrounding future
expectations. Such forward-looking statements involve
known and unknown risks, uncertainties and other factors which may
cause our actual results, revenues, performance or achievements to
be materially different from any future results, performance or
achievements expressed or implied by the
forward-looking statements. Important factors that
could cause our actual results, revenues, performance or
achievements to differ materially from our expectations include,
among other things: (i) periodic fluctuations in financial results
as a result of the nature of our business; (ii) economic and market
conditions; (iii) competition in our business segments; (iv) our
ability to integrate and realize the anticipated benefits of our
acquisitions, including the acquisition of the Bank; (v)
counterparty risks; and (vi) other factors beyond our control. Such
forward-looking statements should therefore be construed in light
of such factors. Other than in accordance with its legal or
regulatory obligations, the Company is not under any obligation and
the Company expressly disclaims any intention or obligation to
update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise.
Additional information about these and other assumptions, risks and
uncertainties are set out in our Annual Report on Form
20-F filed with the U.S. Securities and Exchange
Commission and our Management's Discussion and Analysis for the
three and nine months ended September 30,
2015, filed with the Canadian securities regulators.
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SOURCE MFC Industrial Ltd.