Consumer Portfolio Acknowledges Receipt of Indication of Interest from Third Party
October 14 2020 - 5:46PM
Consumer Portfolio Services, Inc. (Nasdaq: CPSS) (“CPS” or the
“Company”) today announced that it had received on October 7, 2020
a non-binding, unsolicited indication of interest to acquire the
Company from Auto Experience Inc. (“AEI”). Other than a three-page
May letter from AEI delivered to the Company’s CFO, and rejected at
that time, neither management nor the Board of Directors of the
Company have had any discussions with AEI regarding a purchase of
the Company.
Following delivery of the October 7 indication of interest, AEI
issued a press release announcing its interest in acquiring the
Company in what AEI described as an all-cash transaction valued at
$135 million. CPS believes that the press release mischaracterizes
the indicated terms set forth in AEI’s proposal, as the indication
of interest includes numerous assumptions, conditions,
contingencies and other terms not described in the press
release.
CPS said that its Board of Directors will evaluate the
indication of interest carefully and in the context of all relevant
factors, including an assessment of AEI’s ability to perform. The
board will review the merits of the proposal consistent with its
fiduciary duties and in consultation with its financial and legal
advisers. The board will pursue the course of action that it
determines to be in the best interests of the Company’s
shareholders.
CPS urges public investors to scrutinize carefully any further
communications from AEI and rely only on information that is filed
with the U.S. Securities and Exchange Commission.
At this time, the Company does not have further comment but will
make further announcements consistent with its obligations under
the law.
About Consumer Portfolio Services, Inc.
Consumer Portfolio Services, Inc. is an independent specialty
finance company that provides indirect automobile financing to
individuals with past credit problems, low incomes or limited
credit histories. We purchase retail installment sales contracts
primarily from franchised automobile dealerships secured by late
model used vehicles and, to a lesser extent, new vehicles. We fund
these contract purchases on a long-term basis through the
securitization markets and service the loans over their entire
contract terms.
Investor Relations Contact
Jeffrey P. Fritz, Chief Financial Officer844-878-CPSS
(844-878-2777)
Consumer Portfolio Servi... (NASDAQ:CPSS)
Historical Stock Chart
From Jun 2024 to Jul 2024
Consumer Portfolio Servi... (NASDAQ:CPSS)
Historical Stock Chart
From Jul 2023 to Jul 2024