TIDMIHUK
Impact Holdings (UK) plc
("IHUK" or "the Company")
Heads of Agreement signed to Acquire Solicitor Lending Company
IHUK is pleased to announce it has signed Heads of Agreement to purchase
Sutherland Professional Funding Limited ("SPFL"), a solicitor lending business.
The total consideration is expected to be satisfied by the issue to SPFL
shareholders of 1,066,666 new ordinary shares of 50p each ("Ordinary Shares")
representing approximately 48.5 per cent. of the share capital of the Company
as enlarged by the acquisition. The transaction is subject to shareholder
approval and the receipt of a waiver from the Panel on Takeovers and Mergers of
the Rule 9 obligation to make a general offer for the Company. The Company is
also in advanced negotiations with SPFL's current bankers to fund the ongoing
growth of the Group. A circular detailing the particulars of the transaction
and convening an Extraordinary General Meeting to seek shareholder approval for
the Proposals will be sent to shareholders shortly.
IHUK has recently been providing outsourced Loans Administration, Information
Technology, Risk Management and Audit services to SPFL whilst the directors
have been assessing the merits of integrating the two businesses onto a common
platform. The acquisition will result in the operations of the two businesses
being merged within IHUK's Head Office in Manchester as the enlarged entity
looks to benefit from the economies of scale.
In order to effect a smooth transition Tim Sutherland, the present Managing
Director of SPFL, has agreed to act on a consultancy basis following completion
of the transaction. Furthermore, John Russell, a current Director of SPFL, has
agreed to join the Board of IHUK as a Non-Executive Director upon completion.
Further details with respect to this appointment will be included in the
circular.
IHUK expects to announce its audited financial statements for the 12 months to
31 March 2009 before the end of September.
For further information:
Impact Holdings (UK) plc
Paul Davies, Chief Executive Officer Tel: 0161 437 9499
Daniel Stewart & Company plc
Simon Leathers / Oliver Rigby Tel: 020 7776 6550
Notes to Editor:
Impact Holdings (UK) plc through its individual subsidiaries provides short
term funding solutions, loans administration and IT support services in two
specific sectors:
1. The legal disbursements market;
2. Property based bridging and development market.
In addition Impact will fund other opportunities where debt instruments or
debentures provide the primary security and there are opportunities for short
term bespoke funding where serviceability precludes larger lenders from
entering this area.
Impact is regulated by The Office of Fair Trading through which it is licensed
to lend under the Consumer Credit Act 1974 and the Financial Services Authority
for regulated lending.
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