5th Oct 2022 12:31
(Alliance News) - PCF Group PLC on Wednesday said it will suspend "any new lending activities until further notice" after Castle Trust Capital PLC pulled out of an offer for the company on September 29.
Shares in the London-based specialist bank were trading 44% lower at 1.26 pence each in London on Wednesday morning.
PCF Group said it continues to seek ways to raise further growth capital despite the difficult market backdrop. Separately, it said it is continuing to explore other "transactional options", including business, operational or asset sales and other options which give "greater certainty to, and maximise value for, shareholders."
However, the company said that given the uncertainty surrounding capital-raises or other strategic options, it would be "prudent" for the company to suspend its lending. It will also accelerate a review process of its operational structure to reduce its cost base.
Castle Trust pulled out of an offer for PCF Group on September 29 having made a tentative agreement to acquire the company late in July. The put-up-or-shut-up deadline for the deal was extended three times before Castle Trust pulled out.
Castle Trust is a London-based bank, offering savings accounts and mortgage lending.
By Chris Dorrell; [email protected]
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