Arbuthnot Banking Group PLC Completion of Acquisition (6955D)
April 28 2017 - 6:20AM
UK Regulatory
TIDMARBB
RNS Number : 6955D
Arbuthnot Banking Group PLC
28 April 2017
28 April 2017
Arbuthnot Banking Group PLC
Completion of Acquisition - Renaissance Asset Finance
Arbuthnot Banking Group PLC ("Arbuthnot" or "the Group") today
announces that its wholly owned subsidiary Arbuthnot Latham ("AL")
has completed the acquisition of 100% of Renaissance Asset Finance
Limited ("RAF") from its founders following receipt of regulatory
approval.
RAF is a provider of finance for a range of specialist assets
which includes vintage and expensive cars and SME business assets.
On 31 March 2017 customer assets were GBP56m and RAF's net assets
were GBP1.9m.
The consideration will be paid in four staged amounts, all of
which will be in cash. The first payment, equal to the net assets
at completion, will be finally determined after completion and is
anticipated to be GBP2.1m.
The remaining three payments are performance related and will be
based on the profits of RAF in each of the three calendar years
2018 to 2021. The maximum amount payable for the performance based
payments is limited to GBP6.5m.
AL has also provided an intercompany loan to RAF at completion
of GBP57m to re-finance RAF's existing finance liabilities.
The consideration and the refinancing of RAF's funding
liabilities have been or will be satisfied from the Group's current
cash resources.
Commenting on the transaction Ian Henderson the Chief Executive
of Arbuthnot Latham said:
"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
Sir Henry Angest, Chairman and Chief
Executive
Andrew Salmon, Group Chief Operating
Officer
James Cobb, Group Finance Director
Ian Henderson, Group Director and 0207 012
Chief Executive Arbuthnot Latham 2400
Stifel Nicolaus Europe Ltd trading
as KBW (Nomad and Joint Broker)
Robin Mann
Gareth Hunt 0207 710
Stewart Wallace 7600
Numis Securities Ltd (Joint Broker)
Chris Wilkinson 0207 260
Andrew Holloway 1000
Bell Pottinger (Financial PR)
Ben Woodford 0203 772
Sam Cartwright 2588
This information is provided by RNS
The company news service from the London Stock Exchange
END
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