13th Aug 2014 08:35
LONDON (Alliance News) - Manx Financial Group PLC Wednesday said it has entered a joint venture with a consortium led by Andrew Flowers, Chairman of Enterprise Insurance Company PLC, to form a company to build a loan book specialising in insurance premium and asset backed finance for the UK professional services market.
In a statement, the group consisting of Conister Bank Ltd, Conister Card Services Ltd and Edgewater Associates Ltd, said the new company, Manx Financial Ltd, is registered on the Isle of Man. Manx will own 50.1%, with Enterprise owning the remainder. Manx said it will appoint two of the three directors including the Chairman.
Manx will supply all of the new company's operational requirements on "commerical terms", while Enterprise will provide both "proportional equity and also present unique lending opportunities" to the new company. Funding facilities have been agreed with two financial institutions and a further two facilities are currently under negotiation, Manx said.
"We have a good understanding of the premium finance market. Our new partners will provide MFL with access to markets hitherto unavailable to us. The new venture will not cannibalise our current revenue streams, but will open up a potential new customer base for our existing asset backed lending products," Manx Financial Group Chief Executive Denham Eke said in a statement.
Manx shares were Wednesday quoted down 1.3% at 13.70 pence.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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