The Canadian Press

C.A. Bancorp Inc. (TSX:BKP) was put in play Thursday as Maxam Opportunities Fund LP and an affiliated fund company announced they’re making an all-cash offer that values the Toronto-based merchant bank at $32.6 million.

Maxam said its offer of $1.22 per share cash provide’s C.A. shareholders with “compelling value” considering the lack of trading volume for the stock and “the lack of growth prospects for C.A. Bancorp’s business.”

“The offer gives C.A. Bancorp shareholders the ability to realize the offered value immediately and represents a liquidity event at a significant premium with the certainty of a fully-financed, all-cash offer and without having to pay brokerage fees or commissions,” Maxam said.

Its announcement contained no comment from C.A. Bancorp, suggesting the merchant bank’s board of directors isn’t on side with Maxam.

Maxam said it expects to file a formal offer and take-over bid circular with regulators on Monday. It will be conditional on Maxam getting at least two-thirds of C.A Bancorp’s shares.

C.A. shares closed Wednesday at $1.11 per share, which was 11 cents or 9.9% below the offer price announced by Maxam early Thursday.