- 33 - leases. Accordingly, it is an opportune time to sell this business to an appropriate purchaser. The written summary also informed the board of directors that because Merrill Parent did not intend to withdraw from the “Lending Activities” aspect of the business, Merrill Parent “will first remove the assets and operations related to the businesses we wish to retain” and will “transfer all of the subsidiaries of ML Capital Resources elsewhere within our Corporate structure” in three steps before ML Capital Resources’ stock was sold: (1) ML Capital Resources had already sold ML Interfunding’s stock to ML Asset Management for its net book value of approximately $160 million; (2) ML Capital Resources had already sold the stock of certain of its subsidiaries to ML Realty Inc. for approximately $50 million; and (3) ML Capital Resources will declare a $459 million dividend to its parent company, Merrill Lynch Consumer Markets Holdings, Inc. (Consumer Markets), consisting of cash received from ML Asset Management and ML Realty, existing cash balances, the stock of the remaining subsidiaries, receivables, and liabilities. The board was informed that after these transfers were completed, ML Capital Resources “will have equity of approximately $40 million” and “we will be in a position to sell” ML Capital Resources’ stock. The presentation identified “a joint venture between BCE Development, Inc., a wholly owned U.S. subsidiary of Bell Canada and GATX Leasing Corporation, a wholly owned subsidiary of GATXPage: Previous 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 Next
Last modified: May 25, 2011