- Investec has agreed the sale of its UK intermediated mortgage business Kensington Group, together with certain other Investec mortgage assets, to funds managed by Blackstone Tactical Opportunities Advisors and TPG Special Situations Partners.

Investec said the sale had been agreed at £180m in cash based on a tangible net asset value of the business of £165m at 31 March.

Investec says the transaction supports its strategic objective to simplify and reshape its specialist banking business and substantially reduces the assets within its legacy non-core business.

On a proforma basis, as at 31 March, it is estimated that upon completion of the transaction, Investec plc's common equity tier 1 ratio will increase by approximately 1%.

Taking into account this transaction and the recent sale of Investec Bank (Australia) Limited, the common equity tier 1 ratio of Investec plc is expected to increase from 8.8% at 31 Marchto approximately 11.3% and its leverage ratio is expected to increase from 7.4% to about 9.2%.

At 9:04am:

[LON:INVP] Investec PLC share price was -1.5p at 555p

Story provided by