BRIEF-Diversified Royalty Corp. announces agreement for the indirect sale of the Franworks trademarks and rights to Cara Operations Limited

Thu Sep 1, 2016 4:26am EDT
 
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Sept 1 (Reuters) - Diversified Royalty Corp

* Diversified Royalty Corp. announces agreement for the indirect sale of the Franworks trademarks and rights to Cara Operations Limited

* Diversified Royalty Corp. - Says deal for $90.0 million

* Diversified Royalty Corp. - Agreement part of larger deal whereby Cara Operations Limited agreed with OJFG to buy majority control of OJFG for $93.0 million

* Diversified Royalty Corp. - Says $90.0 million of cara's $93.0 million investment in OJFG will be used to fund acquisition of FW rights by OJFG

* Diversified Royalty Corp. - Says upon deal closing Cara will control OJFG and will therefore indirectly own and control FW rights

* Diversified Royalty Corp. - Says dividend will use $15 million of cash proceeds from sale of FW rights to extinguish term debt

* Diversified Royalty Corp.- Terms of sale agreement were reviewed and recommended for approval by a special committee of board of directors of dividend

* Diversified Royalty Corp.- Dividend board of directors will re-evaluate its dividend policy upon completion of transactions contemplated under sale agreement

* Diversified Royalty Corp.- Says at present, dividend board has no intention to amend amount of dividend's current monthly dividend Source text for Eikon: Further company coverage: