Priszm Income Fund reported that it has executed an asset purchase agreement to sell its restaurants in Ontario and British Columbia to 7716443 Canada Inc., an entity controlled by a current European franchisee of Yum! Restaurants International. The agreement was reached after a thorough process to identify, solicit and review potential arrangements to sell various combinations of Priszm’s restaurant assets in light of Priszm’s franchise upgrade requirements and liquidity needs. The agreement encompasses the sale of all 232 of Priszm’s operating restaurants in Ontario and B.C. for an aggregate purchase price of approximately $46.4 million before customary purchase price adjustments including a current asset adjustment. Although there is no guarantee that the required approvals will be obtained or that the conditions will be satisfied, the transaction is scheduled to close on February 28, 2011.
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