Acquisition of Sterling Direct Finance Ltd
London Scottish Bank plc ('LSB') is pleased to announce the acquisition of the business of Sterling, a secured lending broker based in Southend on Sea, Essex, through the acquisition of the entire issued share capital of Sterling Direct Finance Limited ('Sterling Direct'). The business of Sterling has been conducted to date through Sterling Direct and Tompson Financial Corporation ('Tompson') and the activities of Tompson have been transferred to Sterling Direct on completion. Sterling Direct is being acquired from Marc Bertola, the founder of the business.
Sterling sources mortgage and secured lending business through a number of acquisition channels, including the Internet, and has an established lending panel from which it derives its introduction commission. Business written covers both status and non-status lending and the company will become part of LSB's consumer credit division, which already specialises in non-status secured and unsecured lending.
Under the terms of the acquisition agreement, LSB will pay an initial consideration of £5.795m comprising £3.295m in guaranteed convertible loan stock and 2,066,116 new LSB shares.
Application will be made to the UK Listing Authority for the new LSB shares to be admitted to the Official List and to the London Stock Exchange for the new LSB shares to be admitted to trading on the London Stock Exchange's market for listed securities.
Further consideration may become payable up to a maximum of £7.5m subject to the achievement of pre-defined financial targets over the two years following completion. The additional consideration will be met by the issue of new LSB shares at the prevailing market rate at the date of issuance.
Chief Executive, Roy Reece, commented:
I am very pleased that Marc Bertola, the founder of Sterling Direct, along with the staff are joining the LSB Group. Marc and his team have demonstrated considerable expertise in acquiring high volume mortgage/ secured lending businesses. The acquisition of Sterling Direct will enable LSB to cost effectively develop its own secured lending business and will complement the unsecured broking activities which have been established in the Group.
Marc Bertola commented:
Joining the London Scottish Group will enable Sterling to continue its development within the secured lending marketplace. I look forward to Sterling taking advantage of the new opportunities which will undoubtedly present themselves within the Group.
This information is provided by RNS.
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