StockMarketWire.com - Arbuthnot Banking Group's retail bank Secure Trust Bank has agreed on the conditional sale of its branch based non-standard consumer lending business, Everyday Loans Holdings Limited, to Non Standard Finance plc.
Highlights
Consideration comprises £107 million in cash and £20 million in NSF ordinary shares
On completion, NSF will repay c. £108 million intercompany debt to STB Expected post tax profit on disposal of not less than £115 million
On a proforma basis as at 31 October 2015, ABG estimates a 52% enhancement in the Group's CET1 ratio to 16.4% as a result of the Disposal
Since 30 June 2015, STB customer lending balances have continued to grow and now exceed £1 billion (30 June 2015: £852m)
Continued exposure to ELG through STB's shareholding in NSF and £30m loan to NSF
STB will retain its Moneyway personal lending business which is not part of the Disposal
The Disposal is conditional on NSF shareholder approval of its equity fundraising, admission of the new NSF shares to the main market of the London Stock Exchange, regulatory approval and satisfaction of the conditions to the NSF financing
Completion expected in first quarter of 2016
Chairman and chief executive Sir Henry Angest said: "This disposal allows Secure Trust Bank PLC and Arbuthnot Banking Group PLC to capitalise future profits and thus strengthen the business and support further growth."
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