DALLAS, Oct. 26, 2012 /PRNewswire/ -- PMC Commercial Trust (NYSE MKT: PCC) (the "Company") announced today that:
- The Company has concluded its review of potential strategic alternatives with the determination that it will continue to pursue an independent long-term growth strategy;
- Jan F. Salit, the Company's previous Chief Operating Officer, has become the Company's new Chief Executive Officer; and
- The Company will pursue strategic growth initiatives, and anticipates paying a fourth quarter $0.12 per share dividend.
Review of Strategic Alternatives
As previously announced, the Company received certain inquiries expressing preliminary interest in potential strategic transactions. The Board of Trust Managers (the "Board") established a Special Committee of all of our independent trust managers to evaluate these inquiries as well as other potential strategic alternatives that could enhance shareholder value. The Special Committee hired Houlihan Lokey Capital, Inc. to assist it in such evaluation.
The Special Committee's financial advisor contacted potential strategic industry and financial partners, including certain parties that had expressed interest directly to the Company or were referred to the Company and solicited indications of interest in a strategic relationship or other transaction with the Company. The Special Committee received a limited number of non-binding indications of interest. The Special Committee and its advisors evaluated the indications of interest received and conducted a process that included extensive discussions and due diligence with one interested strategic party. The Special Committee ultimately determined that it was in the best interests of the Company's shareholders to terminate such discussions. At this time, the Special Committee and the Board have determined in connection with the strategic alternatives evaluation process that it is in the best interests of the Company's shareholders to continue to operate the Company as an independent entity and focus aggressively on developing an expanded business plan to improve operating performance and long-term growth potential. Upon the recommendation of the Special Committee, the Board has suspended the formal strategic alternatives process. Consequently, the Special Committee concluded the engagement of its financial advisor and the Special Committee is preparing to dissolve.