North Carolina's Centura Bank has a deal to sell its technology leasing subsidiary to a Virginia company for about $36.5 million in cash and stock.
Centura, based in Rocky Mount, will sell CLG Inc. to Herndon-based MLC Holdings Inc. CLG, which is based in Raleigh, N.C., and has $94.5 million of assets, leases primarily to high-tech companies in the Southeast. MLC would pay Centura $33.5 million in cash and $3 million in its common stock. The deal is expected to close at the end of this month.
Centura, which has $8.8 billion of assets, bought CLG in 1996 for an undisclosed price. At the time, Frank L. Pattillo, a Centura executive, said the bank hoped to use CLG as a way to boost non-interest income. Those returns never came, said Steven J. Goldstein, Centura's chief financial officer. "Simply put, the rate of return on our investment was not as high as what we were looking for," he said.