Arbuthnot Banking Group PLC Asset Backed Finance Acquisition (4108S)
December 20 2016 - 12:10PM
UK Regulatory
TIDMARBB
RNS Number : 4108S
Arbuthnot Banking Group PLC
20 December 2016
20 December 2016
Arbuthnot Banking Group PLC
Asset Backed Finance Acquisition
Arbuthnot Banking Group PLC ("Arbuthnot" or "the Group") today
announces that its wholly owned subsidiary Arbuthnot Latham ("AL")
has reached an agreement to acquire 100% of Renaissance Asset
Finance Limited ("RAF") from its founders.
The acquisition remains subject to regulatory approval and
completion is therefore expected to take place early in the second
quarter of 2017.
RAF is a provider of finance for a range of specialist assets
which includes vintage and expensive cars and SME business assets.
On 30 November 2016 customer assets were GBP68m and RAF's net
assets were GBP1.6m.
Consideration will be paid in four staged amounts, all of which
will be in cash. The first amount will be paid at completion and
will equal the net assets of RAF at that time. The remaining
amounts will be made annually based on the profitability of the
business in each of the following three years. The maximum amount
payable for the performance based payments is limited to no more
than GBP6.5m
Both consideration and the refinancing of RAF's funding
liabilities (approximately GBP66m) will be satisfied from the
Group's current cash resources.
The unaudited accounts of RAF for the twelve months ended 30
June 2016 show a profit before tax of GBP2.4m (which included a one
off income amount of GBP1.75m) with the average gross customer
yield being 8.9%, which is after allowing for 3% of broker's
commissions.
Commenting on the transaction Ian Henderson the Chief Executive
of Arbuthnot Latham said:
"Following the transformational deals completed by ABG earlier
this year, I am delighted that Arbuthnot Latham, with the support
of ABG can further develop its expansion and diversification plans.
The acquisition of RAF will fit well alongside our growing Private
and Commercial banking units and I welcome the team from RAF into
the Group. I look forward to working with them in the future."
Enquiries:
Arbuthnot Banking Group 0207 012 2400
Sir Henry Angest, Chairman and Chief Executive
Andrew Salmon, Group Chief Operating Officer
James Cobb, Group Finance Director
Ian Henderson, Group Director and Chief Executive Arbuthnot
Latham
Stifel Nicolaus Europe Ltd trading as KBW (Nomad and Joint Broker) 0207 710 7600
Robin Mann
Gareth Hunt
Stewart Wallace
Numis Securities Ltd (Joint Broker) 0207 260 1000
Chris Wilkinson
Andrew Holloway
Bell Pottinger (Financial PR)
0203 772 2563
Ben Woodford
This information is provided by RNS
The company news service from the London Stock Exchange
END
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